Equity Brief: Asian Stocks Bullish Reversal Post Powell

A summary of the stock market trends & highlights from today's Asian mid-session

Stock market snapshot as of [11/07/2019 0415 GMT]

  • Ahead of the European opening session, Asian stock across the board has shaped the expected recovery in a positive follow-through since its prior underperformance have started to stabilise yesterday’s 10 Jul.
  • The best performers are South Korean’s Kospi 200 and Hong Kong’s Hang Seng Index that have rallied by 1.35% and 1.15% respectively as at today’s Asian mid-session. Another localised positive catalyst for the Kospi 200 is the proposed production cuts of NAND memory chips from key South Korean semiconductors firms due to the curbs on the export of key materials from Japan.
  • Benchmark U.S. stock indices; the S&P 500 and Nasdaq 100 have rallied to print another fresh record high where the S&P 500 printed 3002 and the Nasdaq 100 hit 7923 before pulling back slightly towards the close of yesterday’s 10 Jul U.S. session. In today’s Asia session, the S&P 500 E-Mini futures has inched up by 0.20% to print a current intraday high of 3002. Overall, the medium-term uptrend remains intact for the S&P 500 with the next significant medium-term resistance/risk level at 3045 as per highlighted in our weekly outlook report (click here for a recap).
  • European stock indices CFD futures are showing modest gains at this juncture as well with both the FTSE 100 and German DAX up by around 0.40%.
  • Today, Fed Chair Powell will resume his 2nd of day of testimony to the U.S. Congress at 1400 GMT but it should be a non-event as his testimony is likely to be the same as yesterday.
  • Key economic data releases to take note later will be Germany CPI for Jun out at 0600 GMT, a weak print below expectation of 1.3% y/y is likely to reinforce ECB’s dovish stance to reopen the QE floodgate later this year. Next up will be U.S. CPI for Jun out later at 1230 GMT.

Macroeconomic Calendar

*Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account