US-China trade tension reigns for markets
Trade tension continues to remain chieftain in guiding market movements into Thursday for Asia, though keeping an eye on the political development in one of Asia’s key market, Hong Kong.
Sentiment-driven market
Wall Street continued to decline into Wednesday seeing concerns over on-going trade tensions surrounding the US, outshining the expected support from the Federal Reserve. Specially, the evasion to safety had been apparent as seen from the S&P 500 index whereby the cyclical sectors had been the ones dragging on the broad index. The surge of constituents on the S&P 500 index rising above their 20-day moving average had also notably taken a little breather. This was also despite a below-expectation May CPI reading that further fuelled expectations for the Fed to cut rates.
Ahead of the G20 leaders meeting next week with the Trump-Xi meeting still uncertain and the Trump administration downplaying the likelihood of any imminent deal despite President Donald Trump’s threats, the risks on hand remain.
Notably, leading the decline on Wednesday on the S&P 500 index had been the energy sector as a build-up in US crude inventories sent crude prices spiralling to a 5-month low. Wednesday’s US EIA report had shown an increase of 2.21 million barrels against a sub-0.5 million-barrel expectation. In turn, WTI and Brent crude futures were last seen around $51 and $60 respectively and appears to be on the way to continue the downtrend, one to watch. The OPEC monthly oil market report will be due today ahead of the IEA’s on Friday but the risks will also be with any deterioration of the demand outlook thus giving prices a bearish bias.
Asia open
A soft open had thus far been seen for Asia markets amid the abovementioned backdrop, doused with a strong dose of trade tensions implications. The attention today may largely remain with Hong Kong, one of the key markets for the region. A steeper than average drop had been seen for the HSI as the index gave up its 200-day moving average once again on Wednesday. As protestors and polices stand ready in Hong Kong, bracing for a second day of potential clashes, look to sentiment affecting the local market. The next strong support comes in at the 27,000 figure.
Yesterday: S&P 500 -0.20%; DJIA -0.17%; DAX -0.33%; FTSE -0.42%
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.
Trade on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
