After a week of growth oriented action global markets faltered in overnight trading. The US dollar dropped, tech shares came under pressure and bond markets gyrated through expanded trading ranges. Despite the lower dollar and generally weaker sentiment gold made only limited gains and oil shot higher.

The reversal action sees Asia Pacific markets under opening pressure. However generally higher volatility at lower volumes can indicate fragile sentiment, and predicting today’s closing direction is more of a coin-toss than usual. 

Japan will release GDP, current account and lending data early in the trading session. Any surprising strength could see traders draw a line from the ECB’s expected accommodation withdrawal stance next week straight to the Bank of Japan. Market reactions could go either way. Investors may focus on the signs of economic strength and buy, or focus on the higher interest rate hit to valuations and corporate bottom lines, and sell.