ASX200 led higher by value stocks
Asian stocks claw their way into positive territory for the week, ASX200 led higher by value stocks - tech falls into a bear market and attention turns to what shapes as bumper US Non-Farms data.
It’s been a choppy week. It’s been a slightly interrupted week. And as we head into the final stages of Asian trade, it’s shaping up as a positive week. Asian stock indices have generally climbed today, albeit modestly, with the Hong Kong HS50, Japan 225 and Australia 200 all up for the week, with only the range-bound CSI300 struggling, for now, to remain in the green.
The session has been light on new information, with only a smattering of second and third tier data to digest. The Reserve Bank of Australia released its quarterly Statement of Monetary Policy, but the document failed to move the markets, with the AUD/USD slightly lower for the day, as the US dollar retraced some of its overnight declines.
As already outlined at Tuesday’s policy meeting, the central bank’s economic projections have been upgraded once again.
However, the clear takeaway, as it was on Tuesday, is that a serious reconsideration of policy setting won’t come until July – barring a huge shock, the June meeting practically need not go ahead.
The markets digested a slew of Chinese data
This had minimal impact on the markets, at least to time of writing. Overall, the data was positive though, with the trade surplus coming in higher than expected, and services PMI also exceeding estimates.
After yesterday’s spill, the ASX200 has dusted itself off today, to add 0.3%, at time of writing. Though a solid showing, the index is off its intraday highs, after retesting, and failing to breakthrough the 7100 mark. The gains have been driven by a clear tilt to value/cyclicals today. Iron ores astronomical rise is underpinning strength in the materials sector, and the financials and energy sectors are also higher. The tech space has once again been the notable underperformer, shedding around 2% for the day, with the move pushing the space into technical correction and raising the question of whether the Australian tech bubble has popped.
Moving into the European and US sessions, and futures are pointing to a solid open for both region’s major bourses.
Want to trade with IG?
Create an IG trading account or log into your existing account to get started now.
All eyes tonight will be on US Non-Farm Payrolls data, with the consensus estimate indicating the US economy added 990k jobs last month – with some surveyed economists tipping a potential gain of 2.1 million.
Given the wide dispersion of estimates here, it’ll be interesting to see what reaction there may be in the event the data overshoots by a couple of hundred-thousand either side – it may be shrugged off in such an event. The real risk would be if the data is an absolute howler – that would certainly raise questions about the consensus view on the US economy, although that seems to be very unlikely, given the recent spate of strong economic figures.
You can trade with IG by creating a trading account or log into your existing account to get started.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
