More record highs on Wall St will push Asia Pacific markets higher at today’s open, according to futures traders. However a data packed week and stock reporting seasons around the globe should see market focus turn to the numbers. A weakening US dollar may prove a brake on any investor exuberance.
The positive stock impulse is further supported by rallies in oil and gold. Disappointingly copper and iron ore dropped despite the currency support across the commodity complex. Traders highlighted weaker than expected US GDP growth in the advance estimates as a catalyst. Share market bulls pointed to stronger durable goods orders and prices to justify the gains.
Almost one third of US companies have reported quarterly earnings so far, and forecast beating results underpin the rally. In Japan more than 100 top companies will inform investors this week. On Friday Capitaland reports in Singapore and Australian reporting will hit full stride next week.
A full hand of macro data could see market volatility increase across the board this week. Highlights include China PMIs, Japan retail sales and Australian inflation data. Markets are expecting no change from the FOMC this Thursday but the curiously week US dollar will intensify focus on Fedspeak. The release of non-farm payrolls on Friday nights caps a hectic data week.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.