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- What trading situation we can expect during the Asian session? – Key data from China
What trading situation we can expect during the Asian session? - Key data from China
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Loading...The indices in Europe closed lower on Friday and the negative sentiment went over the American session as well. There is the possibility to see lower prices of the indices during the Asian session as well.
The most important factor that investors in the US are focused on are the corporate financial results and the indices were trading lower after the worst than expected results in the Tech sector. Paralel with that the USD fell and Gold went higher, showing that the growth in the US might be slowing. The indices in the Globar aspect, as the markets in the USA, Europe, India and the MCSI - emerging market index are close to record highs, but now the investors are cautious and every bad news and risky situation can scare the traders and might result in a correction.
The financial results from the Giant Amazon.com gives a negative signal, as the investors did not like the company's results and they might reevaluate the companies P/E rations and other indicators of the stocks due to very low liquidity during the Summer months. This week we expect a slew of economic data, which will show the state not only of the Global economy but also in the USA, China and Europe.
Stoxx 600 fell by 1.1%, the worst performance for the last 14 weeks, DAX fell as well by 0.4%, CAC lower by 1.3%, UKX fell by 0.8% and S&P 500 corrected by 0.3% during the New York session. As we can add the fact that the USD traded lower, higher JPY by 0.2% and this is the strongest the currency has been for the last 6 weeks. Euro is up by 0.4% and GBP up by 0.2%. The commodies show higher Crude Oil price by 0.3%, reaching its highest point for the last eight weeks, during 5 consecutive trading session . Copper fell slightly by 0.2% and Gold is up by 0.4% for the last six weeks.
At the end the indicators show slow growth of the Global economy and very weak recovery of some key economies. Is this enough for the investors to keep seeking and investing in riskier financial instruments. For now the answer is probably Yes, but we need to be cautious and vigilant for possible corrections and the emergence of Risk-Off sentiment.
During the Asian session we expect data for Building Permits and Bisuness confidence from New Zealand, Industrial Production and Construction Orders from Japan, Manufacturing PMI and Non-Manufacturing PMI from China and data from Australia and if the data is better than expected we might see higher prices of the indices and AUD and NZD. If not JPY might gets stronger and Gold will continue its rise.
Source: Bloomberg Pro Terminal
Trader - S. Fuchedzhiev
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