Asian equities could trade mixed as global equities traded relatively flat yesterday and closed unchanged for May after the volatile price action seen during the month. Although some desks noted that positive capital flows to EM equities, especially Chinese stocks, are slowly coming back on clients’ demands after months of heavy outflows due to global monetary policy repricing and de-risk plays from participants.
In a volatile fashion, the energy sector could underperform today as Oil prices swung between gains and losses, with selling pressure after reports about a potential Russian exclusion from OPEC. Session ahead, Chinese Caixin manufacturing PMI data highlights today’s session. Later, traders will keep an eye on Fed speakers from Fed Williams and Fed Bullard after some mixed statements from other members regarding the rate path. Recently, Fed’s Bostic said there could be a significant reduction in inflation this year. His suggestion for a pause in September should not be interpreted as a “Fed put” or belief that the Fed would rescue markets.
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© 2019 High Leverage FX - All Rights Reserved.