Equity Brief: Asian stocks start the week on a cautious stance

Stock market snapshot as of [22/07/2019 0510 GMT]


  • Ahead of the European opening session, most Asian stock markets have started a new week on a cautious stance due to rising geopolitical tensions in the Persian Gulf where Iran’s armed forces seized a British oil tanker last Fri, 19 Jul.
  • Secondly, market participants had started to scale back on the expectations of a 50 bps Fed rate cut on 31 Jul after a Wall Street Journal report that stated that the Fed was likely to cut rates by 25 bps and may make further cuts in the future due to trade uncertainties. The CME FedWatch Tool is now pricing in a 22.5% probability of a 50 bps cut after the 31 Jul FOMC meeting, down from a high of 46.2% seen last week, after the dovish remarks made by New York Fed official Williams.
  • The worst performer is the Hong Kong’s Hang Seng Index which has declined by -0.77% as at today’s Asian mid-session led by the consumer cyclicals and telecommunications sectors; down by -0.98% and -1.50% respectively.
  •  A sell-off was seen in the S&P 500 E-mini futures on last Fri, 19 Jul U.S. session that broke last Thurs, 18 Jul low of 2974 (last Fri, it closed at 2971 at the end of the U.S. session). In today’s Asian session, the S&P 500 E-mini futures has managed to inch up by 0.32% to print a current intraday high of 2980. Overall, a potential medium-top is in place for the S&P 500 where further down move can trigger a negative feedback loop into the Asian stock markets coupled with the U.S. earnings season still in play. Click here to read our latest weekly technical outlook.  
  • European stock indices CFD futures are not showing any significant movement at this junction where both the FTSE 100 and German DAX are almost unchanged. From a technical analysis perspective, the DAX is still not showing any clear signs of a recovery, watch the 12200 near-term support next.

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.

The markets are moving. Stop missing out.

OPEN AN ACCOUNT