It's been something of a bumper session for equity
markets across Asia with better than expected Chinese services PMI readings
being seen as the key driver here. Earlier in the week there had been concerns
over the disappointing manufacturing PMI data from Beijing, especially as few
saw this as being unlikely to trigger further stimulus measures, and it's the
Hang Seng that has been the stand-out winner. The Hong Kong benchmark has added
in excess of 500 points and the prospect of further sanctions between the West
and Russia appears to be having little effect on the market.
Wall Street may have drifted lower yesterday but that
strong lead from Asia - and more specifically the better than expected economic
data from China - is currently set to see both the DOW and S&P recoup those
losses at Wednesday's open. US factory order data and the Fed's beige book
could provide some direction in the near term, but it's more likely that a
market reaction to the deteriorating situation in Ukraine - and the prospect of
tighter sanctions against Russia - will have the potential to drive sentiment
in the near term, whilst as the week draws to a close it's going to be all eyes
on the non-farm payrolls. Ahead of the open we're calling the DOW up 41 at
17109 and the S&P up 4 at 2006.
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