Asian markets cautious
Asian stock markets are having a mixed session, trading mostly on the weaker side after a volatile Friday session saw Wall Street gnomes end the day almost unchanged, having unwound nasty intraday losses. The S&P 500 ended down 0.01%, the Nasdaq lost 0.30% and the Dow Jones rose just 0.03%.
For some reason, US index futures are rallying impressively today, perhaps in a delayed reaction to Friday’s easing in long-term yields, or just another act of recklessness following the leader that we have seen throughout the last week. S&P 500 futures rose 0.85%, Nasdaq futures jumped 1.05% and Dow futures climbed 0.55%.
Asia, however, is not taking the bait, with most regional markets trading smoothly after Beijing tightened virus restrictions in parts of the city, and Shanghai’s Jingan district shut down stores. stores and told residents to stay home. Japan’s Nikkei 225, still a slave to Nasdaq moves, posted a reluctant 0.63% gain today, but South Korea’s Kospi was unchanged, while Taipei rose 0.38% with Bangkok climbing 0. .40%.
Otherwise, it’s a sea of red. Mainland China’s Shanghai Compositae fell 0.50%, while the CSI 300 fell 1.05%. Hong Kong’s Hang Seng fell 1.90%, with Singapore down 0.50%, Kuala Lumpur unchanged, Jakarta down 0.60% and Manila down 0.40%. Australian markets also quickly unwound the post-election rebound this morning, with the All Ordinaries now unchanged, while the ASX 200 plunged into the red, down 0.10%.
With no positive developments around the situation in Ukraine over the weekend, and everyone important probably reducing their carbon footprint in Davos anyway, negative price action in Asia should see European markets start the day weaker. A slight German IFO investigation could darken the mood. US markets remain a full flurry of mind-boggling intraday sentiment swings.
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