Markets right across Asia have been in for a stormy session today with all the major regional indices finishing up in negative territory. The big driver here is the growing concern over the state of the Chinese economy – overnight we saw numbers highlighting the fact that foreign direct investment into China fell way short of expectations, reaching a four year low. This is just the latest in a volley of data points that are giving investors cause for concern across the globe. A sharp decline in Tokyo Condo sales also knocked the Nikkei despite that perpetually weak Yen and the big question now is whether this will mark the start of a bigger consolidation phase.
Wall Street is currently eyeing some modest losses at the open following that strong finish yesterday. US economic data disappointed too but the expectation is this may help defer any rushed rate hike from the Fed. This is all building up to the FOMC verdict tomorrow night and as was noted yesterday although there’s no real expectation of action here, it’s the tone of the rhetoric that will count. With US inflation data due ahead of that FOMC statement too, there’s still scope for market opinion to shift but various dollar baskets do appear to be struggling to make further progress for now. Ahead of the open we’re calling the DOW down 26 at 17005 and the S&P unchanged at 1984