Equity Market Handover: Asia Stocks Bull Party On For Now
Kelvin Wong June 20, 2019 6:30 AM
Stock market snapshot as of [20/6/2019 0520 GMT]
- Ahead of the European session open, Asian stock markets have continued their 3rd day of consecutive gains reinforced by a dovish Fed that has met market expectations on the delivery of an interest rate cut in the next FOMC meeting in Jul. Based on CME Fed Watch Tool derived from data obtained from Fed funds futures, the probability of a rate cut in Jul has jumped to 100% from 80% as seen before yesterday’s FOMC.
- China and Hong Kong stock markets are the star performers as at today’s Asian mid-session where the China A50 and Hang Seng Index have rallied by 2.80% and 1.01% respectively. Assisted also by a weaker USD/CNH (offshore yuan) where it has broken below a key short-term support at 6.8980. The Hang Seng Index has broken above 28000 (the upper limit of the neutrality zone) that has opened up scope for further potential upside; click here for a recap.
- European stock indices CFD futures are joining the “risk on” party as well where the FTSE 100 and German DAX are now recording gains of close to 0.40%.
- Key economic data release and event to take note later will be U.K retail sales for May and the BoE monetary policy meeting outcome out later at 1100 GMT. Click here for a recap on our analysis on the upcoming BoE meeting.
*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.