Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Asia market morning update - what about tariffs?

The likelihood of a trade deal had clearly risen this week, though the tariffs removal question continues to hang in the air for Asia markets to ponder.

Source: Bloomberg

ADP employment disappointment

Wall Street saw to the continued risk-on mood aiding US indices on its run. The S&P 500 index and Dow both clocked moderate gains on Wednesday, charging ahead with news of the reported progress in trade talks and shrugging off data disappointments overnight.

Both the March ADP employment and ISM services PMI came in short of the market’s expectations. The former printed a 129K read against the consensus 170K, which represented some signs of sogginess for the labour market. Although, it appears that investors knew better than to count on this data in light of the lack of strong correlation with Friday’s NFP itself. It would be crucial, however, for Friday’s headline payroll reading to show a significant jump from February’s 20K to reassure the market that the labour market is not heading towards the direction of a contraction.

Meanwhile the ISM non-manufacturing PMI disappointed, coming in at the lowest reading since August 2017, though well in expansion territory at 56.1. All said, however, we do have the 10-year yields up at 2.52% levels, reflecting the abating growth fears within markets at present. Friday’s payrolls release will be one for the greenback and the US indices flatlining at present, requiring the next boost forward.

US-China trade negotiations

To a large extent, the movements overnight had the US-China trade progress to thank following the report of progress marked towards a trade deal. This latest news on a 2025 timeline set for China to realise trade pledges further reinforces the likelihood and may perhaps be a positive news given the long runway. Although, the boost for equity markets in the near term would still fall to a large extent on the question of tariffs removal. Talks continues through to Thursday, one to continue watching for any trickling in of news or even the announcement of a deal signing itself this week. USD/JPY (大口) seen reflecting this improvement sentiment, edging up to 111.45 levels despite greenback weakness and narrowing yield differentials. Resistance up ahead towards 111.90.

USD/JPY Mini

Brexit no-deal

Separately on GBP/USD, one can see the convergence continuing with prices picking up despite the chaos that continues for Brexit. Prices had been enlivened to some extent with the latest vote by parliament to rule out a no-deal Brexit once again, though the cross-party talk between PM Theresa May and opposition leader Jeremy Corbyn had yielded little progress so far. The latter is expected to continue just as we wait for where the breakout of the GBP/USD will be with the downside risks so far contained following the gains overnight.

GBP/USD Mini

Asia open

The receding growth concerns coupled with sustained trade hopes provide support for Asia markets into this Thursday session. That said, as told above, investors remain intently awaiting for any determination on tariffs removal on US-China trade. Look to any signs of cautiousness from North Asian markets particularly with China and Hong Kong expected to be away on Friday for a market holiday ahead of US-China trade talk conclusions and the US March NFP release. A light data day is expected for the Asia region.

Yesterday: S&P 500 +0.21%; DJIA +0.15%; DAX +1.70%; FTSE +0.37%

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 40
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.