Ambiguous and contradictory signals from international markets present a puzzle for investors today. On Friday night shares were generally lower, but on narrow depth. Commodities bounced after a week of pressure. The US dollar fell, but the Australian dollar fell further. The performance of Asia Pacific markets today is a coin toss, despite a negative indication from futures markets.
A slump in construction activity weighed ion European shares. US data gave a more optimistic take, with industrial production and consumer comfort on the rise. Weaker than forecast trade prices contradicted these numbers and a lift in capacity utilisation.
Traders are focussed on two areas; a surge in commodity markets and explosive moves in crypto currencies. While Bitcoin trading is safely left to the brave, the commodity market moves could see support for Energy and Material stocks in today’s session. A key question is whether the positive indication for the global industrial outlook will see regional share markets resume their recent rallies after corrective moves last 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.