Equity Market Handover: Profit Taking Continues For Asian Stocks

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

Stock market snapshot as of [25/6/2019 0430 GMT]

  • Negative news flows have been the main driver that have dampened risk appetite where a report from Washington Post that has cited a U.S. investigation on China Merchants Bank with relation to sanctions violations regarding North Korea. This news flow has triggered selling pressure across China banking stocks that has caused the China A50 and Hang Seng Index to be the worst underperformers as at today Asian mid-session; down by -2.12% and -1.31% respectively.
  • Middle East geopolitical risk remains on red alert where Iran has issued a verbal warning to U.S. that the recent U.S. sanctions on Iran’s top leadership group means an end of diplomacy. The “safe haven” JPY has continued to benefit from such an environment where the USD/JPY has started to break below last Fri, 21 Jun swing low of 101.70 which has created a negative feedback loop back into Japanese equites. The Nikkei 225 is the 3rd worst underperformer so far, down by -0.62%.
  • The S&P E-mini futures has also caught the “negative news flow flu” where it has inched down by -0.30% from yesterday, U.S session close to print a current intraday low of 2942 as at today Asian mid-session. Overall, its medium-term uptrend remains intact with key short-term support to watch at 2934.
  • European stock indices CFD futures are in the red as well. Both FTSE 100 and German DAX are showing losses of around -0.40% at this juncture.
  • No major European/U.K economic data releases and events later. The key event to note later will be U.S. Fed Chair Powell’s speech at 1700 GMT. Also, the release of U.S. housing and consumer confidence data earlier at 1300 GMT and 1400 GMT respectively.

Macroeconomic Calendar

*Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.

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