Asian Stock Market: Trades mix on subdued S&P500, DXY slips around 106.80, oil below $90.00
- Asian equities are displaying a mixed performance as the DXY turns sideways.
- The DXY may remain on the sidelines ahead of the US Inflation.
- Oil prices are establishing below $90.00 as supply worries have trimmed.
Markets in the Asian domain are displaying a mixed performance as the S&P500 is performing subdued. The US markets remained mixed on Friday after the release of the US Nonfarm Payrolls (NFP). The US Nonfarm Payrolls (NFP) landed at 528k, significantly higher than the expectations of 250k and the prior release of 372k. Investors were expecting that commentary from US corporate players citing a halt in the recruitment process after the US Fed hiked interest rates to squeeze liquidity from the market will make the US economy crippled in employment generation.
At the press time, Japan’s Nikkei225 added 0.19%, China A50 eased 0.40%, Hang Seng tumbled 0.70%, while Nifty50 gained 0.34%.
The US dollar index (DXY) has surrendered its entire gains in the Asian session and has slipped below open. Investors are shifting their focus towards the release of the US Consumer Price Index (CPI), which is due on Wednesday. As per the market consensus, US inflation is seen at 8.7%, lower than the prior release of 9.1%. It is worth noting that this could be an initial sign of exhaustion in the price pressures. This could be a relief for the US households as the higher price rise index was cutting their ‘paychecks’ dramatically.
On the oil front, soaring odds of a recession and a promise of higher oil supplies by the OPEC+ have pushed the oil prices lower. The oil prices have settled below the psychological support of $90.00 and are likely to display losses further.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
