Friday 19 September 2014

Markets | 19/09/2014 | And the answer is NO. Modicum of support after tranche of uncertainty




Asian equity markets have finished the week on an upbeat note with the prospect of further stimulus measures from Beijing again proving instrumental in helping sentiment. There was also a cautionary note from Japan as it downgraded its economic outlook and the PM promised reforms, which served to push the Yen even lower. USD/JPY is now within easy reach of the 110 mark but once again the upshot here was to cheer the Nikkei. Finally we’ve got the Alibaba IPO priced and this has come in at the top of the expected range, so even if the economic data isn’t looking too hot for China right now, at least on the face of it, it appears that there’s clearly no shortage of confidence over the prospects for this tech giant.
Wall Street is eyeing yet more gains at the open – that mixed bag of data we saw out yesterday arguably backs the tone we saw from the Fed on Wednesday, namely that there’s still no real justification to be had for a quick hike in rates. What’s more, there’s little in the way of economic data due for release in the coming hours that could serve to derail this trend. Globally equities have also seen a modicum of support coming through off the fact Scotland voted to remain part of the UK, removing one tranche of uncertainty. Ahead of the open we’re calling the DOW up 59 at 17325 and the S&P up 7 at 2018.

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