Asia equity markets took encouragement from Wall Street‘s firm performance, where stocks gained from the recent inflation-triggered sell-off to catch a 3-day losing streak, with risk sentiment supported by data including US Producer Price Index that accelerated sharply in April, rising 0.6% and pandemic-low than expected US jobless claims. On the flip side, the MSCI China Index has entered into bear market territory after falling 21% from its February high due to increased regulatory intervention as a top concern for investors. Worth keeping an eye on how the crackdown from Beijing will evolve in the coming quarter’s; the tech sector valuation is getting a punch, weighing massively on the sector.
On the commerce front, the market is paying attention to US/China/Australia narratives as US Secretary of State Antony Blinken said the US had increased coercion concerns with China both publicly and privately. Blinken also reaffirmed the unshakeable commitment of the US to Australia in meeting with Foreign Minister Payne and reiterated that the US would not leave Australia on its own facing economic intimidation from China amid worsening bilateral ties.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.