Asia markets waffling along
Asia markets are expected to waffle along, trailing after Wall Street on Monday, with the focus still set on the G20.
Bullish bias remains for crude
Amid the uncertainty up ahead with the G20 Trump-Xi meeting, both the Dow and the S&P 500 index were seen flatlining and ending near neutral at the start of the week. Notably, the energy sector on the S&P 500 index slipped to become the worst performer with crude oil prices retracing some gains despite the latest sanctions on Iran by the US on Monday. Talks on the limited further sanctions that the US can take against Iran had likely cast some doubts on additional actions. That said, the upward bias here perhaps remains intact with the matter looking far from resolved. The potential for further retaliation certainly remains on the table and with prices falling to the support level, this would make for a good entry for bulls. The short-term event risks will however be with any surprise build-up in crude oil inventories.
Source: IG
Meanwhile on FX, the US dollar index, measured against six major currencies, continued to chart its course lower into Tuesday, underpinned by the sustained expectations for the greenback to soften. While the wait continues for the G20 event for geopolitics, the series of Fed speakers including Fed chair Jerome Powell and the only June FOMC dissenter Fed Bullard will be the highlight into Tuesday. Between the market and President Donald Trump, the pressure piles on for the data-driven Fed to lower rates and any details or added dovish comments could further weight on the greenback strength. This had likely been the expectations that the USD pairs had been trading on into the session, and further weakness should not be ruled out with the market’s ballooning conviction of a July Fed cut.
Source: IG
Asia open
The vacuum of fresh leads provides little for markets that remain sitting cautiously, reluctant to err on either side ahead of the G20 Trump-Xi meeting outcome. This could see to the relative rangebound mode sustaining into the Tuesday session. Looking at Asia markets, the relief in both the Fed move and trade talks hopes had altogether enabled markets to retrace much of their May losses. Any disappointment coming from the G20, however, remain one to puncture prices, albeit in a more measured manner with supportive central banks and expectations for Chinese policy reactions.
For the local STI, prices may waffle along the 3320 level into the week with immediate support at 3278 and resistance seen up ahead at the 3400 handle.
Source: IG
Yesterday: S&P 500 -0.17%; DJIA +0.03%; DAX -0.53%; FTSE +0.12%
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.
