It’s been a broadly positive end to the week for equity markets across Asia with a weak Yen continuing to prop up the Nikkei, whilst stocks listed on Shanghai moved higher amidst speculation that further government stimulus measures were likely to be required. Data overnight from Beijing saw weaker than expected lending data round off what has been a rather disappointing few days for data from the world’s second largest economy and with this trend now expected to continue, the expectation is that some targeted stimulus policies will have to be deployed.
Wall Street is looking at a mixed start to the day’s trading but we do have those advance retail sales numbers still to come before the opening bell. There’s a clear concern that the fed could tighten monetary policy sooner than expected so anything that makes this number look a little hot could in turn send shockwaves across the market. New sanctions against Russia also have the potential to impact some US listed stocks given the number of joint ventures between oil companies so the details of these will be under scrutiny when released. For now however we’re calling the DOW down 9 at 17040 and the S&P up 2 at 1999.