Target prospects drive actions
US markets took advantage of Target’s softened outlook to price in the spike in US inflation on a sluggish overnight news day, pushing Wall Street higher. The S&P 500 rose 0.95%, the Nasdaq rebounded 0.94% and the Dow Jones gained 0.80%. In Asia, US futures fell sharply. Nasdaq and S&P 500 futures fell 0.45%, with Dow futures falling 0.30%. The price action reinforces the theory that it’s all about following the dominant fast money moves on Wall Street this week.
Asia ignores the moves in US futures today, as it often does, opting to follow the rally of major US corporate boards overnight after a few very mixed sessions. The Nikkei 225 rose 0.85%, helped by a weaker yen this morning. South Korea’s Kospi gained just 0.20%, possibly held back by the downward revision to first quarter GDP this morning.
In mainland China, markets appear to be experiencing a wave of profit taking after a strong performance this week. China’s vice commerce minister said today that foreign trade faces huge pressures and uncertainties, which certainly won’t have helped sentiment. The Shanghai Composite is down 0.70%, while the CSI 300 lost 0.40%. Hong Kong is ignoring the noise from the mainland, however, remaining focused on Wall Street’s gains overnight as the Hang Seng rose 1.65% today.
In regional markets, Taipei rebounded 0.90%, with Singapore lagging behind, falling 0.20%. Kuala Lumpur gained 0.20%, Jakarta rose 0.45%, Bangkok 0.10% and Manila 0.30%. Australian markets also posted modest gains after yesterday’s post-RBA selloff. The All Ordinaries rose 0.30%, with the ASX 200 rising slightly by 0.15%.
European markets returned some of Monday’s gain overnight, but will likely use late New York and Asian price action today as an excuse to open slightly higher this afternoon.
This article is for general information purposes only. It is not investment advice or a solution for buying or selling securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for everyone. You could lose all your deposited funds.
With over 30 years of experience in the foreign exchange market – from spot/margin trading and NDFs to currency options and futures – Jeffrey Halley is OANDA’s Senior Market Analyst for Asia -Pacific, responsible for providing timely and relevant macroeconomic analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia, as well as prominent print publications including the New York Times and The Wall. Street newspaper, among others. He was born in New Zealand and holds an MBA from Cass Business School.
