US investors are falling away from the tech sector after a string of disappointing quarterly statements. While macro-economic data remains broadly positive the re-adjustment to a more realistic assessment of the tech outlook is weighing on stocks. However bond yields continue to edge higher and oil jumped 2%, pointing to an overall pro-growth stance for markets. Volumes are lower ahead of key data and decisions this week.
Firmer inflation reads in Germany and Spain and better than forecast US housing sales helped bolster broader investor sentiment, limiting stock falls. A slightly weaker US dollar also helped.
China PMIs and Australian building approvals this morning may inform trading today. However the key event is the conclusion of the Bank of Japan’s two day meeting. Analysts are watching closely for any signs of a shift in the BoJ’s Yield Curve Control policy. Any hints that the central bank is moving away from its practice of holding ten year bond yields near zero will likely reverberate through global markets.
Asia Pacific futures are pointing to a weak start to trading. However falls in the region yesterday and a positive outlook for the energy sector may restrain selling. A positive finish to the session is possibly, subject to news flow.
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.