Slightly lower than expected inflation prints out of
China overnight added to trader caution in regional markets with both the Hang
Seng and the Shanghai Composite finishing Thursday's session marginally lower
as a result. There's certainly no sign of panic and news like we're seeing
about the Alibaba IPO being fully subscribed already underlines the confidence
in China, but growth is certainly taking a different trajectory for now. The
Nikkei however managed another upbeat session with the index touching 8 month
highs, spurred on by yet more Yen weakness which saw USD/JPY trade briefly
above the 107 level.
This waning confidence is taking a toll on US futures
with the major indices both tipped to open the day a fraction lower. Economic
data may be thin on the ground, although we do now seem poised for the prospect
of an escalation in the geopolitical situation. Specifically the US is
increasing pressure on ISIS in what has the potential to become a rather
destabilising conflict in the Middle East. For now however that's one to watch
as opposed to act upon and we're calling the DOW down 41 at 17028 and the
S&P down 3 at 1993.
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