Equity Brief: Asian Stocks Do Not Like A Robust U.S Job Market

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

Stock market snapshot as of [08/07/2019 0505 GMT]

  • Ahead of the European opening session, a wave of profit taking activities sweep across the board for Asian stock markets with losses between -1.00% to -2.00% as at today’s Asian mid-session. The main culprit to blame is last Fri, 05 Jul better than expected U.S. non-farm payrolls data/jobs numbers that has tampered the Fed’s rate cut expectations in the upcoming FOMC meetings.
  • Based on the latest Fed funds futures pricing data from CME FedWatch Tool, the probability of two Fed funds rate cuts (50 bps) for the upcoming 31 Jul FOMC meeting has been reduced to 8% from 19.9% a week ago. Interestingly, the S&P 500 E-mini futures has fallen by a lesser magnitude versus its Asian peers where it only dipped by 0.38% from last Fri, 05 Jul close to print a current intraday low of 2982 in today’s Asian session.
  • It seems that Asia Pacific stocks are more vulnerable to downside if global liquidity conditions start to tighten again due to a higher debt levels denominated in USD relatively versus the rest of the world.  Overall, from a technical analysis perspective, the major stock indices in our coverage are in the midst of completing a potential medium-term topping process after a potential residual push up for this week (click here to read our latest outlook report).
  • European stock indices CFD futures are also faring better at this juncture where both the FTSE 100 and German DAX are showing modest losses of -0.19% and -0.43% respectively.

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