Asia markets are taking a breather

Feel free to fire a few questions my way, but  don’t ask about my Gold position haha

LIVECHAT - ASIA MARKETS VIEW via  EIKON MESSENGER

Stephen Innes, the Managing Partner at Vanguard Markets in Singapore, joins us at 9:30 am IST to discuss trade wars, talks between Trump and Xi, markets and currencies in Asia. To join the conversation.

Hong Kong

After yesterday’s holiday and with the Hang Seng in full catch up mode post-g-20, one could only speculate where the markets would be if there wasn’t chaos in the street overnight.

But we maintain the view that unless this apparent one-off act of civil disobedience, turns into a much much longer affair it won't have any lasting economic impact. And while it is causing a few ripples, it won’t trigger a tidal wave impact on markets   

While waiting for the dust to settle, the good news for the financial markets is that trading desks in Hong Kong are going about business in an orderly fashion.

With the meeting in Vienna done and dusted, what’s next

One thing I love about trading oil is how quickly the narrative shift.

OPEC + sticking to their production curb discipline will continue to support oil prices as it remains the primary mechanism for the delicate task of keeping the market equilibrium intact.

 But unfortunately for OPEC supply discipline, the oil market remains hostage to record U.S. shale production. Which brings us full than in the face of rising US production investors remain worried about the outlook for global oil demand

After yesterday risk on stampede, the oil market is taking a bit of a breather this morning while jostling for position ahead of this week API inventory report, which always makes price discovery a bit more challenging. But the overhang from the swath of disappointing manufacturing reports still fresh in mind it could temper any bullish market ideas today.

Gold Market

Then the gold market is consolidating at the low end of the range as Gold bulls are content to let the gold dust settle. While gold remains supported by the weaker global growth outlook and the lower for longer interest rate narrative, but there is not a lot of excitement today as the market feels battered and bruised after the post G20 beatdown.

European tariffs

AS widely expected the US trade hawks turned  their attention to Europe, so the tariff threat of$4 billion of additional European Union goods as  the long-running dispute of aircraft subsidies drags on  is not catching anyone by surprise