Asian Equities Are Drifting |

Asian Equities Are Drifting |

With Australia wishing Her Majesty a happy birthday and Greater China out dragon boating, the rest of the region has contented itself with replicating Wall Street’s positive close on Friday. Especially with no fireworks emerging from the G-7 summit over the weekend. Given the ups and downs of the previous four years under President Trump, President Biden will take a tranquil G-7 meeting as a win. The leaders endorsed the 15% global corporate tax plan, made noises on climate change, donated some vaccines and pointed fingers at China and Russia.

Investors will be keeping a close eye on this week’s FOMC . We’re unlikely to see any change in interest rates or the language in the rate statement. US inflation levels have risen, the Fed is too heavily invested in the transitory inflation narrative to change course. Thus, I very much doubt the members will even move their rate hike expectations forward in the dot-plot. Any mention or hint of a taper could cause sharp volatility in the financial markets, a scenario that the Fed is all too happy to avoid.

Friday saw the close 0.20% higher; the climb by 0.35%, and the edge 0.04% higher. Index futures on all three have drifted higher in Asia, with markets supported by the expectation that the FOMC this week will be as dovish as ever.

The has risen by 0.60% today, while the is unchanged. With Greater China and Australia away, Singapore is flat, while Kuala Lumpur has increased 0.65% and Jakarta by 0.25%. Bangkok and Manila are 0.25% lower.

If Asia is in wait-and-see mode, the uneventful G-7 should be all Europe needs to open higher this afternoon. However, London may be held back as it awaits official confirmation of a one-month delay in full reopening, with travel and leisure stocks likely to feel the chill winds the most.

Original Post

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a comment

Send a Comment

Your email address will not be published. Required fields are marked *