Equity Brief: Asian stocks gain on Fed's dovish safety net
Kelvin Wong July 19, 2019 6:26 AM
A summary of the stock market trends & highlights from today's Asian mid-session.
Stock market snapshot as of [19/07/2019 0430 GMT]
- Ahead of the European opening session, Asian stock markets have staged a recovery from yesterday’s losses after New York Fed official Williams has made a dovish remark on the need for a swift 50bps cut on the Fed funds rate in yesterday, 18 Jul U.S. session. Based on the CME Fed Watch tool, the Fed funds futures has priced in an increased probability of a 50bps in the upcoming 31 Jul FOMC meeting to 46.2% from 19.9% a week ago. Interestingly, the New York Fed has clarified that Williams is not sending a specific policy signal and rather Williams’s speech is focused on an academic research perspective.
- The best performer is Japan’s Nikkei 225 where it has rallied by 1.84% led by the semiconductor sector where the shares of key chipmakers; Advantest and Tokyo Electron surged by 4.6% to 6.5%. These gains have been triggered by a positive feedback loop from Taiwanese major chipmaker TSMC’s positive revenue outlook despite the on-going trade tensions between U.S. and China.
- The S&P E-mini futures has continued to maintain yesterday’s U.S. session positive momentum where it has inched up higher by 0.35% in today’s Asian mid-session to print a current intraday high of 3008. Watch the intermediate resistance at 3012 which is the pull-back resistance of the former “Ascending Wedge” support from 27 Jun 2019 low and the 76.4% Fibonacci retracement of the recent decline from its all-time high to 18 Jul 2019 low.
- European stock indices CFD futures are joining in the bullish bandwagon where both the FTSE 100 and German DAX are up by 0.50% and 0.69% respectively. Key intermediate resistance to watch on the DAX will be at 12430/490 (61.8% Fibonacci retracement of the recent decline from 03 Jul high to yesterday, 18 Jul low)
*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.