Equity Brief: Asian Stocks Stabilise Ahead of Powell Testimony

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

Stock market snapshot as of [10/07/2019 0430 GMT]

  • Ahead of the European opening session, Asian stock markets have started to show signs of stabilisation after 3-days of consecutive decline since last Fri, 05 Jul. In addition, it is a positive follow-through where a recovery has been seen in the U.S. S&P 500 and Nasdaq 100 at the close of yesterday’s U.S. session (09 Jul). Both indices have managed to ink out a gain of 0.12% and 0.53% respectively from lower opening levels versus the previous day closes on Mon, 08 Jul.   
  • Interestingly, the on-going recovery/stabilisation seen across the region (Asia, Europe & U.S) has taken place near their respective key medium-term supports (click here for a recap on our latest weekly technical outlook report). The best outperformer as at today’s Asian mid-session is the Kospi 200 (prior worst performer) with a gain of 0.67% after its 2-week of decline met the 61.8% Fibonacci retracement of the previous entire up move from 29 May low to 01 Jul at 267.62 as per highlighted yesterday.
  • European stock indices CFD futures have also started to stabilise from yesterday’s losses. Both the FTSE 100 and German DAX have inched up slightly by 0.10% at this juncture. The current modest rebound seen in the German DAX has occurred after a test on its key medium-term support at 12400 in yesterday, 09 Jul European session.
  • U.S. White House economic adviser Larry Kudlow was quoted in the press that both U.S. and Chinese trade officials had constructive talks over the phone yesterday, thus keeping “the hopes alive” for future negotiation talks over a trade deal.
  • Key event to take note later will be the 1st day of Fed Chair Powell’s semi-annual testimony to the U.S. Congress at 1400 GMT. Powell will be giving a statement on Fed’s monetary policy and the state of the U.S. economy. A dovish statement is likely to maintain the expectation of a 25% bps cut in the Fed funds rate in the upcoming FOMC meeting on 31 Jul.

Corporate Highlights

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