Risk off sentiment to continue
US data
The rivalry between China and Japan seems picking up steam. China increased its pressure on Japan with travel bans and even the release of a Japanese film in China. Some staff of Chinese state- owned companies in China have been told not to travel to Japan and to cancel their trips. All Personal travel applications will also be cancelled, while passports of senior corporate officials are usually being withheld by the management. The retaliation followed after Japan pointed out that they would intervene with military action should China attack Taiwan. The story seems to gear up steam. The last similarly statements have been made by Japanese Prime Minister Abe about five years ago.
Market talk
The negative momentum in stock markets continued also during the early trading hours on Tuesday. At the same time crypto markets lost USD 1.2 trillion as traders reduce their speculative bets. Bitcoin had already lost 28% in the past six week and currently looks like the negative momentum will continue further. The Nasdaq had broken below last month price and if no positive sentiment returns might break even lower towards the end of the month. The bearish sentiment might derive from the concern that valuations of tech companies remain high amid interest rates remaining high in the US. Also Asian remain markets remain under pressure. The HangSeng index from Hong Kong lost 1.7% today and Japan’s Nikkei 225 dropped 3.2%.
Tendencies in the markets
- Equities negative, USD mixed, crypto weaker, oil weaker, Silver positive, Gold sideways.
Author
Frank Walbaum
FX Strategies.Asia
Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.
