Asia markets are trading on the backfoot after an uninspired lead from Wall Street. The major indices finished a choppy session in the red ahead of the U.S. equity options expiry on Friday. Retail and institutional traders have been buying the highs in recent weeks. Traders should pay attention to liquidity dynamics in the coming days.
On the energy front, China National Food and Strategic Reserves Administration said it is working on releasing crude oil reserves. The energy complex traded under pressure yesterday as reports noted that the U.S. is said to have asked other countries to coordinate the release of strategic oil reserves and raised the oil reserve release request with China, Japan, India and other countries. If a global effort to bring down oil prices comes into play, the energy sector could make a strong correction and revert some upside plays. Also on the radar, the U.S. is reported mulling a potential interim agreement for Iran in nuclear negotiations, and if any deal is made, oil players will expect that oil-exporting restrictions to Iran be lifted, and it would bring more oil offers to the world.
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© 2019 High Leverage FX - All Rights Reserved.