Traders and investors braved another see-sawing overnight trading session as global factors conflicted with individual company reports. The US Congress failed to unlock government spending, extending the government shutdown into its 34th day, while conflicting comments from officials turned up trade tensions. In direct contrast corporate reporting was on balance positive and chipmakers as a group lifted 6%. Profitability across the 108 top 500 companies that have reported is up around 14%.

Surprisingly US PMIs showed an acceleration in both services and manufacturing during January, one of the few macro indicators to defy the current gloom.

Market action was therefore choppy and mixed. Oil and industrial metals found support, and precious metals dropped, largely on the back of a stronger US dollar. However bonds also found support. Once again major stock indices traded both red and green over the session before closing mostly higher.

In yet another contradiction commodity currencies came under pressure. The AUD slipped below 71 US cents, and the NZD dropped a half cent after failing at the 68 cent level.

Asia Pacific futures markets are signalling a positive start to today’s session. The release of Japanese CPI data will garner higher attention after the Bank of Japan cut its inflation forecast earlier this week. Singapore investors will watch Jardine Matheson shares after yesterday’s 83% plunge and rally back. In Australian volumes will be boosted by the expiry of exchange traded options, with $1.5 billion in stock changing hands on exercise and the cash settlement of $165 billion in index derivatives.

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.