US markets mixed, sets the tone for Asia

Asian equity markets have generally tracked lower today with US index futures continuing lower in Asian hours, and the Nasdaq 100 futures notably, giving up some of yesterday’s gains. Overnight the Nasdaq outperformed, boosted by Microsoft’s results and tech sector M&A. The Nasdaq rose 0.76%, but the S&P 500 fell 0.17%, and the Dow Jones fell 0.80% as some legacy industries reported soft results.

In Asia, the Nikkei 225 has fallen 0.50% as the yen continues to strengthen. In China, the Shanghai Composite has risen 0.15%, with the CSI 300 up 0.55%. Hong Kong has eased 0.40%, with Taiwan down 0.35%. Singapore has fallen 0.45% and Malaysia has declined by 0.45%.

In Asia today, South Korea Consumer Confidence jumped to 91.6 from 79.4 in October. That follows an impressive Advance GDP yesterday and further reinforces that northern Asia ex-Japan is recovering strongly on the coattails of China.

Australian markets are also in the green today. The ASX 200 is up 0.15% and the All Ordinaries up 0.40% after robust CPI data this morning and M&A speculation. Australia lifted itself out of deflation with the QoQ Q3 Inflation Rate reversing the previous quarters 1.90% fall, climbing 1.60% today. The RBA however, remained uber dovish, stating that they could ramp up bond-buying indefinitely. That may be the RBA’s preferred route ahead instead of another rate cut next week. If the RBA does press the rate trigger for the first time since March, it is widely expected to trim rates from 0.25% to 0.10%. A rate cut will also raise speculation with regard to negative rates, which senior RBA officials have stated is a possibility that the bank is considering.

All in all, it is a non-descript day for Asia, having received a mixed lead from Wall Street overnight. However, with storm clouds gathering in Europe, and the impending US election, I believe that today’s session is merely a holding pattern, and that risk reduction is the path of least resistance for the remainder of this week, and into next week.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD losses 1.1900 amid dollar’s comeback

EUR/USD has extended its gains, nearing 1.1950, but quickly turned negative now trading around 1.1880. The greenback recovers as equities fall as the market’s sentiment turns sour.

EUR/USD News

GBP/USD retreats from daily highs, holds around 1.3350

GBP/USD retreats from near 1.3400, partially undermined by Brexit woes but mostly on renewed dollar’s demand. Doubts arise about Chief EU Negotiator Barnier traveling to London.

GBP/USD News

XAU/USD trades with modest gains above $1810 level, lacks follow-through

A softer tone surrounding the USD assisted gold to gain some traction on Thursday. COVID-19 vaccine optimism might cap the upside for the safe-haven precious metal. Holiday-thinned liquidity warrants some caution before placing fresh directional bets.

Gold news

US Thanksgiving Wrap: Consumers carry October, November starts to look dicey

A triple dose of US data on Wednesday before the Thanksgiving holiday confirmed the strength of the consumer recovery even as employment problems again loom from the rising numbers of Covid-19 closures across the country.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex Majors

Cryptocurrencies

Signatures