Equity Brief: Asian stocks gain on Fed's dovish safety net

A summary of the stock market trends & highlights from today's Asian mid-session.

Stock market snapshot as of [19/07/2019 0430 GMT]


  • Ahead of the European opening session, Asian stock markets have staged a recovery from yesterday’s losses after New York Fed official Williams has made a dovish remark on the need for a swift 50bps cut on the Fed funds rate in yesterday, 18 Jul U.S. session. Based on the CME Fed Watch tool, the Fed funds futures has priced in an increased probability of a 50bps in the upcoming 31 Jul FOMC meeting to 46.2% from 19.9% a week ago. Interestingly, the New York Fed has clarified that Williams is not sending a specific policy signal and rather Williams’s speech is focused on an academic research perspective.
  • The best performer is Japan’s Nikkei 225 where it has rallied by 1.84% led by the semiconductor sector where the shares of key chipmakers; Advantest and Tokyo Electron surged by 4.6% to 6.5%. These gains have been triggered by a positive feedback loop from Taiwanese major chipmaker TSMC’s positive revenue outlook despite the on-going trade tensions between U.S. and China.
  • The S&P E-mini futures has continued to maintain yesterday’s U.S. session positive momentum where it has inched up higher by 0.35% in today’s Asian mid-session to print a current intraday high of 3008. Watch the intermediate resistance at 3012 which is the pull-back resistance of the former “Ascending Wedge” support from 27 Jun 2019 low and the 76.4% Fibonacci retracement of the recent decline from its all-time high to 18 Jul 2019 low.
  • European stock indices CFD futures are joining in the bullish bandwagon where both the FTSE 100 and German DAX are up by 0.50% and 0.69% respectively. Key intermediate resistance to watch on the DAX will be at 12430/490 (61.8% Fibonacci retracement of the recent decline from 03 Jul high to yesterday, 18 Jul low)

Macroeconomic Calendar


*Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.




Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.