Asia Wrap: China trade data was a drag on sentiment

Stephen Innes SPI Asset Management

Asia stocks traded higher, led by China markets on trade optimism, although the weak China trade data was a drag on sentiment.

Overall investor response remains a bit muted given the scarcity of follow up details some traders are pointing to Chinese state media who are refraining for getting overly giddy and didn't even bother to refer to the outcome as a "deal", noting only that progress has been made in numerous areas.

Huawei is also reportedly not part of the deal, but they are such a massive bargaining chip I really can't see how that they aren't part and arc in the broader agreement. If Huawei is permitted to access Google Play; this will suggest we are really on the way to an outstanding trade deal.

Overall it feels like investors remain somewhat disappointed by the limited nature of the US-China trade deal but remain optimistic that phase 2 and 3 will come to fruition.

On Brexit, weekend headline cacophony has reigned in some of the Brexit deal euphorias from last week. And Sterling traders sitting back on razor's edge not so sure about those freshly minted long Cable positions as markets expectation for an exit at month-end remain low.

Author

Stephen Innes

SPI Asset Management

With more than 25 years of experience, Stephen has a deep-seated knowledge of G10 and Asian currency markets as well as precious metal and oil markets.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.