Investing.com UK - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Market Brief: Gaps Mostly Filled After A Weak Open

ByMatt Simpson
Published 26/08/2019, 07:41
Updated 09/07/2023, 11:31
Daily % Candles

  • It’s been reported that the Dutch government have been in talks with 325 UK-based companies who are considering relocating to the Netherlands post-Brexit.

  • China’s Vice Premier Liu He says China are willing to resolve its trade dispute with the US via “calm” negotiations. This is after Trump announced fresh retaliatory tariffs on China late Friday and “hearby ordered” US companies to leave China.

  • FX markets saw a few U-turns, initially kicking off the week in risk-off mode but fears subsided after comments from Liu He.

  • USD/JPY it its lowest level since October 2017 but has since closed its gap. AUD/USD fell to a 13-session low but has since recovered losses and trades marginally higher for the day. NZD/USD also came under pressure before its U-turn, with today’s intraday low hitting its lowest level since October 2015.

  • USD/CNH gapped to a fresh 11-year high as it plays catch-up with the onshore CNY, in response to the escalating tensions with the trade war.

  • US10Y yielded its lowest rate over 3-years, currently trading at 1.46%.
    • Asian Cash Indices % Change

  • Ahead of the European session open, Asian stock markets have plunged into the red in line with last Fri’s 23 Aug weak performances seen in the key benchmark U.S. stock indices; S&P 500 – 2.59%, Nasdaq 100 – 3.15% reinforced by U.S. President Trump latest’s tariffs increase on China’s products after China has proposed to retaliate on additional tariffs on US$75 billion of U.S. goods, including soybeans, automobiles and oil.

  • The worst performer as today’s Asia mid-session is the Hong Kong’s Hang Seng Index (down -2.79%) where localised factor added to the woes. Yesterday’s anti-government protest rally has seen an escalation of violence between police and protesters after the prior week’s peaceful rallies. The on-going three months of protests have dampened consumer and business sentiment where Hong Kong now faces the risk of the technical recession in Q3.

  • Earlier comments today from China Vice Premier Liu He, a key negotiator in U.S/China trade talks have managed to “smooth’ some selling pressure as he said the China is willing to resolve the trade dispute through dialogues with a calm attitude.

  • However, caution shall be warranted on the bounces seen so far in Asian stocks as the USD/CNH (offshore yuan) has broken above the previous medium-term high of 7.1400 and managed to hold firm above 7.1400 so far.

  • The S&P 500 E-min futures has staged a gapped down in at the Asian open session where it has declined by -1.45% to print a current intraday low of 2810. As at today’s Asian mid-session, it has managed to retrace slightly from its intraday low with a loss of -0.86% at this juncture.

    • Up Next:

  • The G7 talks will be concluded and its been reported that Trump will accompany Macron to meet the press today.

  • German IFO is of interest as they continue to point towards a recession, which places Euro crosses and the Dax into focus for traders. You can take a closer look at the bearish charts from the week ahead post, but expectations are for the reads to deteriorate further which leaves potential for a bounce on the Euro if they surprise to the upside.
    • Economic Calendar

    "Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.

    Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions."

    Original Post

    3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

    Latest comments

    Install Our App
    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    © 2007-2024 - Fusion Media Limited. All Rights Reserved.