In today’s session, Asia bourses begin on the back foot amid spill-over selling from the tech sector declines in Wall Street, which pulled all major equities indices into the negative territory with strong reflationary pressures. The reflation theme is back on the radar ahead of the summer in the North Hemisphere, which keeps pushing commodities and bond yields higher, affecting long-duration assets like tech stocks. In the last session, Hang Seng and Shanghai Composite traded mixed amid concerns of a governing crackdown. The Chinese telecom firms hindered after their lost attractiveness against an NYSE delisting.
In the US session, stocks traded as technology and growth sectors losses saw NASDAQ 100 lose around 2.5%. At the same time, a fresh run to new highs in iron and copper supported cyclical names amid robust reflationary drives on new cycle peaks in inflation breakeven. In the week ahead, investors will be looking for a more vigorous US Consumer Price Index and Retail Sales, Chinese inflation data, ECB minutes looking for any signs of tapering, German ZEW Economic Sentiment Index, OPEC monthly oil market report, the Australian budget, and United Kingdom GDP.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.