Asian equities may face another round of choppy trading following the same trends set by global markets. On Wall Street, both the S&P 500 and Nasdaq remained largely unchanged. In the tech and EV sectors, sluggish electric vehicle sales in China, particularly from Tesla, have exerted downward pressure. After the U.S. markets closed, U.S. Commerce Secretary Gina Raimondo added further headwinds to the sector by hinting at potential regulatory actions, including a ban on Chinese internet-connected vehicles. This follows U.S. Senator Sherrod Brown’s recent proposal to prohibit all such vehicles.
Market participants are eagerly awaiting the next significant catalyst amid a relatively quiet week for data. Next week’s U.S. Consumer Price Index (CPI) report and Federal Reserve Chair Jerome Powell’s commentary will be pivotal. Today’s agenda is sparse, with U.S. jobless claims as the only key data point. While it’s unlikely to affect broader market trends, the report could introduce short-term volatility if the data significantly surpasses expectations. Strong job numbers would reinforce the notion of a resilient labour market and bolster the Federal Reserve’s “higher interest rates for longer” stance.
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© 2019 High Leverage FX - All Rights Reserved.