Asia Pacific traders may be in for a head scratching session today. In overnight action the US dollar softened as optimism about a China/US trade deal increased. This scenario generally supports commodity prices, but instead base metals fell and crude oil and iron ore plummeted. Despite the commodity pressure, the Australia dollar rose, although share futures are pointing to opening losses in Sydney, and a usually supportive lower Japanese yen is trading alongside flat Nikkei futures.

A key question for regional markets is whether mainland Chinese stock indices can add to yesterday 5% to 6% gains. The US president may have played a key role by tweeting:

“China Trade Deal (and more) in advanced stages. Relationship between our two Countries is very strong”

However in an even-handed approach the president’s OPEC related tweets preceded a 3% rout in crude oil prices.

Disappointing company results could also hit regional indices. Spark Infrastructure (NZ) reported a surprise loss, and both Bingo Industries and Speedcast International missed estimates. As the reporting winds down an overall miss on earnings growth may also affect trading.

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.