Asian markets futures across Asia-Pacific rose on the last trading day of this quarter due to a few positive catalysts.

Stocks in the US climbed on Thursday evening as Washington and Beijing are prepared to extend high level negotiating for weeks or months to get a comprehensive deal. The S&P 500 rose 0.36% last night, lifted by materials (+0.95%), financials (+0.83%) and industrials (+0.77%), while defensive utilities (-1.25%) and communication (-0.5%) were lagging. S&P 500 index has tested 2,800 support and overall trend remains bullish, suggested by SuperTrend (10,2).

Japan’s Industrial output rose 1.4% MoM, beating expectation of 0.4% growth. Meanwhile, Japan’s unemployment rate dropped 0.2% from the previous month to 2.3%, suggesting the economy remains resilient against global headwind and job market is tight.

Apparently there is no immediate, clear cut solution given the fact that China has likely pushed back on US demand of structural reforms in its state-led economic model, and intellectual property related issue remains to be another ‘hard bond’. Despite uncertainties surrounding trade discussions, investors are happy to see both sides remain patient on the talks and not in a rush to push for conclusion.

The US dollar index rose for a sixth day to 96.7 area, mainly due to weakness in the euro as investors assess the weakness of European factory data and a lower-than-expected Germany CPI readings, which dived to 11-month low at 1.3%.

Stronger dollar and improved risk sentiment have worked together to push down goldprices to US$1,292 area. Technically, gold price has broken down a key support at US$1,300, and its short-term trend has flipped downwards, suggested by SuperTrend (10,2). 

Sterling will be under the spotlight again tonight, with another UK parliament vote on Brexit scheduled. The outlook still remains cloudy and GBP’s volatility has spiked up recently due to huge uncertainties. Theresa May has likely lost her control over the situation and become a ‘messenger’ between Brussel and UK parliament. If no deal is reached before the 12 April deadline, which is only two weeks from now, there could be a non-deal Brexit and sterling will face critical moment again.

US Dollar Index – June 2019


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