Equity Brief: Risk off for Asian stocks ahead of Fed

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

Stock market snapshot as of [31/07/2019 0500 GMT]

  • Ahead of the European opening session, Asian stocks are trading in the red as markets participants have trimmed long positions ahead of the most important event of the year; the much-anticipated 25 bps interest rate cut on the Fed fund rate after today’s Fed FOMC meeting.
  • Asian stock markets have shrugged off the positive vibe from technology bellwether Apple that has rallied by close to 4% to print a high of 218.44 in the after U.S. hours trading session. Earnings beat expectations where it recorded $2.18 EPS versus consensus of $2.10 EPS.
  • Other catalysts that have dragged down Asian stocks today are U.S. President Trump’s overnight tweets that lambasted China’s unfair business practises as U.S. trade officials kickstart fresh negotiation talk with China’s counterparts in Shanghai today. Also, weak quarterly earnings from major Korean semiconductor firm, Samsung Electronics that posted a 56% plunge in profit from a year ago and offered a less rosy guidance. The on-going materials input curb from Japan will dampened its business outlook and delay a plan to return money to shareholders due to significant new challenges. Share price of Samsung Electronics has tumbled by -1.18% as at today’s Asian session.
  • The S&P E-mini futures is up marginally by 0.17% to print a current intraday high of 3020 in today’s Asia session.
  • After a tumble of -2.18% seen in the German DAX at the close of yesterday’s European session that broke below the 12200 medium-term range support (also the 2nd worst performer among European stock markets yesterday), the DAX CFD futures is trading slightly higher by 0.15% at this juncture but still below 12200/350 intermediate pull-back resistance.

Up Next

  • Eurozone Q2 GDP and Eurozone Jul CPI out at 0900 GMT where consensus is pegged at 1.0% y/y and 1.1% y/y respectively.
  • Fed FOMC meeting outcome at 1800 GMT follow by Fed Chair Powell press conference at 1830 GMT. CME FedWatch Tool derived from Fed funds futures pricing has indicated a fully priced in 25 bps cut on the Fed fund rate to 2.00%-2.25%. The probability of a deeper 50 bps stands at 21.9% that is holding steady from last week’s figure at 23.0%.

Corporate Highlights

Macroeconomic Calendar

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


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.