Asian equities could trade defensively as month-end flows and mixed macro data from China and the US also weighed on trade sentiment.
US stocks experienced a decline on Wednesday, tempered by month-end flows and mixed data. Following disappointing PMI figures from China and US Chicago, the real economy levered stocks could underperform, with traders now also eyeing China’s Caixin Manufacturing PMI. If data continues to miss expectations, more participants could start to forecast a lower China GDP for the quarters ahead and potentially a new 25bps RRR cut by the PBoC, should the economic recovery still be weak and could require more liquidity in the second half of 2023. Looking ahead, traders will be trading the first day of the month, eyeing tomorrow’s US Nonfarm Payroll data before the Fed blackout period that also starts on Friday.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.