Market Brief: China's fresh stimulus plans boost sentiment for now
Kelvin Wong August 16, 2019 7:38 AM
FX & Stock market snapshots as of [16/08/2019 0600 GMT]
- In today’s Asian session, the risk sensitive AUD/USD has continued to firm up within a sideways trading range in place since 08 Aug 2019. 0.6820 remains the range resistance to keep an eye on.
- The AUD/USD is being bided up in anticipation of fresh stimulus injection from China. The National Development and Reform Commission has made an announcement today that it will roll out a plan (no details yet) to boast China’s disposable income later in 2019 and 2020.
- The EUR/USD remains under pressure as it inches down lower towards the 01 Aug 2019 swing low of 1.1027. Current weakness is being supported by a dovish media interview yesterday from ECB official, Rehn that has mentioned a “significant and impactful” stimulus package is required in the upcoming ECB meeting in Sep.
- Mix bag is the theme today for Asian stock markets. The Singapore’s STI and South Korea’s Kospi 200 have remained in the red as at today’s Asian mid-session.
- Rising tension between North and South Korea has reinforced the underperformance seen in the Kospi 200. North Korea has launched two projectiles into the Sea of Japan after Pyongyang described South Korea’s president as “imprudent” and vowed to terminate inter-Korean talks.
- China and Hong Kong stock markets shine in anticipation of fresh stimulus plans announced by China’s state planning agency to boost domestic spending.
- However, economic uncertain remains intact in Hong Kong hampered by domestic unrest. The City braces herself for more protests over this weekend after the police has rejected a protest march to be held this Sunday organised by a major NGO, The Civil Human Rights Front.
- The S&P 500 E-mini futures has inched up higher by 0.45% as seen in today’s Asian session to print a current intraday high of 2864. Interestingly, it is now hovering below a minor range resistance of 2872.
- U.S. Housing Starts for Jul out at 1230 GMT (1.270M consensus versus 1.232M in Jun)
- U.S. Michigan Consumer Sentiment Index (97.2 consensus versus 98.4 previous).
*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.