Markets | 26/09/2014 | Wall Street suggesting a modest rebound and Q2 GDP revision due before the opening bell

Yesterday’s shake-out on Wall Street sent shockwaves across the bulk of Asian equity markets ahead of the weekend break although the Shanghai Composite managed to buck the trend and eek out some gains by the close. Despite fears of the Chinese economy slowing, we’re seeing a series of messages from Beijing that are offering highly selective stimulus measures and this appears to be providing a degree of support at least for now. There may be some additional good news ahead of the ‘golden week’ holiday that starts next Wednesday and arguably without this the gains could be construed as rather tentative.

Wall Street futures are suggesting that we’re going to see a modest rebound as Friday’s session gets underway but pushing the DOW clear of 17,000 is likely to be important psychologically if the rout is to be broken. There’s the Q2 GDP revision due before the opening bell and University of Michigan confidence data expected shortly after trade commences and either of these could be sufficient to determine whether a more sustainable rally can be found. For now however we’re calling the DOW up 53 at 16999 and the S&P up 4 at 1970.