A Saturday call made by President Trump and Chinese leader Xi Jinping is likely to set a positive tone for APAC opening today, though many markets are running half-day and will be closed tomorrow for the New Year holiday break.
President Trump described the phone call as a ‘big progress’ over US-China trade deals, covering all areas of dispute.
Lack of details to substantiate a breakthrough in trade talks, however, it is unclear how long a technical rebound in US equity markets seen last week will sustain. US consumer confidence sentiment has fallen to five-month low, alongside with a string of missing manufacturing PMIs from China and European countries. This has painted a cloudy outlook of global demand as the fast-paced growth is probably over, and trade uncertainties has become a major disruptive factor for capex and business continuity.
Asian markets, ex-Japan, opened mildly higher as investors struggled to strike a balance between trade hope and disappointing China manufacturing PMIs, which fell to contraction territory of 49.4 in December, below consensus forecast of 49.9. This marks the end of 33 months of consecutive expansion as the country’s manufacturing sector is expected to face adverse impact from US trade tariffs. Shanghai Composite registered 24.6% losses this year, ranked the worst performing equity market globally.
Market Calendar – China official manufacturing PMIs
Global markets YTD performances
|MARKET||PE_RATIO||Price Change Year To Date Percent|
|S&P 500 INDEX||17.0||-7.0|
|DOW JONES INDUS. AVG.||15.4||-6.7|
|NASDAQ COMPOSITE INDEX||40.1||-4.6|
|HANG SENG INDEX||9.7||-14.8|
|SHANGHAI SE COMPOSITE||11.7||-24.6|
|S&P/ASX 200 INDEX||15.7||-6.2|
|Straits Times Index STI||11.3||-10.0|
|FTSE Bursa Malaysia KLCI||19.2||-5.6|
|JAKARTA COMPOSITE INDEX||19.7||-2.5|
|STOCK EXCH OF THAI INDEX||14.4||-10.8|
|Euro Stoxx 50 Pr||13.4||-14.8|
|TAIWAN TAIEX INDEX||12.5||-8.6|
|HO CHI MINH STOCK INDEX||15.6||-9.3|
|DOLLAR INDEX SPOT||4.6|
|US 10-YEAR TREASURY||-1.9|
|WTI CRUDE OIL||-24.7|
|Gold Spot $/Oz||-1.8|
|USD-CNH Cross Rate||-5.3|
By Margaret Yang in Singapore
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