Asian Stock Market: Tumbles on downbeat US Consumer Confidence, focus is on Fed Powell


  • Asian equities have witnessed a sell-off, following the footprints of Wall Street.
  • The downbeat US Consumer Confidence has dented the market sentiment globally.
  • A stable US PCE price-wise is itself a damaging catalyst for the risk-perceived currencies.

Markets in the Asian domain have witnessed a steep fall as the downbeat US Consumer Confidence has crossed the boundaries and has dented the sentiment of investors globally. The downwardly revised US Consumer Confidence brought a significant sell-off in the Wall Street on Tuesday and a similar pattern has been followed in the Asian indices. The US Conference Board reported the Consumer Confidence at 98.7, lower than the estimates of 100, and the former release of 103.2.

At the press time, Japan’s Nikkei225 tumbled 1.18%, China A50 surrendered 1.00%, Hang Seng plunged 1.51%, and Nifty50 eased 0.66%.

A downbeat US Consumer Confidence displays less confidence of the US individuals in the growth prospects of the US economy. No doubt, the soaring fossil fuels, and food prices have cut the growth forecasts and the households are facing the headwinds of lower-valued ‘paychecks’. This also results in lower consumer spending on durables and consumer products and eventually a slump in aggregate demand.

Meanwhile, the US dollar index (DXY) is hovering below 104.50 and is awaiting the speech from Federal Reserve (Fed) chair Jerome Powell. Fed Powell is expected to sound hawkish while providing hints of likely monetary policy action in July.  Apart from that, the US economic data holds significant importance. The release of the US Personal Consumption Expenditure (PCE) will hog the limelight. The market consensus states an unchanged US PCE at 7% on an annual basis, which is also vulnerable for the US Consumer Confidence. A significant slump in the US PCE price-wise is the need of the hour.

On the oil front, oil prices have witnessed a minor correction after a firmer recovery. The black gold is holding itself above $111.00 in the early European session. The supply constraints will continue to stay prolonged as the OPEC cartel is unable to fill the restricted supply from Moscow.

Nikkei 225

Overview
Today last price 26793.24
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 26793.24
 
Trends
Daily SMA20 26950.32
Daily SMA50 26813.94
Daily SMA100 26847.72
Daily SMA200 27751.65
 
Levels
Previous Daily High 27276.88
Previous Daily Low 26787.54
Previous Weekly High 26912.43
Previous Weekly Low 25718.18
Previous Monthly High 27479.24
Previous Monthly Low 25531.19
Daily Fibonacci 38.2% 26974.47
Daily Fibonacci 61.8% 27089.95
Daily Pivot Point S1 26628.23
Daily Pivot Point S2 26463.21
Daily Pivot Point S3 26138.89
Daily Pivot Point R1 27117.57
Daily Pivot Point R2 27441.89
Daily Pivot Point R3 27606.91

 

 

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