Busy week ahead for Fed trade – A wrap up of the Asian stocks


Asian stocks witnessed muted trading as the investors turned wary of the main working catalysts of the week, from the deadline of tariff to central bank meetings. The dollar value and treasuries didn’t go through any change. In Hong Kong and Tokyo, equities went through a slight change whereas it was marginally higher in Sydney and Seoul while the investors waited for the news on whether or not Washington would move forward with the tariff hike on 15th December.
After the benchmark ended as low in thin trading, S&P 500 futures fell flat. The value of oil edged downwards and meanwhile, Japan’s 10-year bond increased to 0 for the first time during March. The time for China and America to strike a deal is running out and this would eliminate a hike in tariffs. Most markets are watching out for signs of progress in the near future. Right at the top of the radar are policy meetings at the European Central Bank and the Federal Reserve which might provide clues on whether or not monetary easing in going to occur in 2020.
The idea that we might go through a calmer time period in between the trade tensions of China and America is rather a positive one and is also important. An eminent strategist, Ben Powell said that this is nothing but a temporary period of calm and that the tensions between China and America are persistent and structural at the same time. The Mexican peso saw gains on growing positivity that approval is close for USMCA.
Key events to watch out for this week:
  • The Federal Reserve will decide on rates on coming Wednesday, followed by a brief press meet from Chairman Jerome Powell
  • China will report on inflation on Tuesday and the data on the growth of credit will be due at a fixed point of time in the approaching week
  • The UK will conduct a general election on Thursday
  • The following European Central Bank policy will give its decision on Thursday
A look at the major moves of the various markets
  • S&P/ASX 200 Index moved downwards at 0.2%
  • The index of Topix remained unchanged at the Tokyo break
  • Hang Seng Idex fell flat
  • The index of Kospi rose by 0.2%
  • S&P500 futures remained unchanged though S&P 500 Index fell by 0.2%
  • Shanghai Composite Index fell by 0.4%
  • The offshore yuan was at 7.037/dollar, went through a very little change
  • The yen remained unchanged at 108.82/dollar
  • The British pound was flat at $1.325
  • The euro went through little change at $1.109
  • Australia’s 10 year bond fell by 3 basis points to 1.13%
  • The yield on 10 year Treasuries was at 1.85%
  • Gold went through little change at $1,470/ounce
  • West Texas Intermediate crude oil plummeted 0.1% to $58.95 per barrel
So, if you’re an investor who is trading the market in the near future, you should keep in mind the above-listed fluctuations and changes in the market that might help you in shaping the decisions.

This is a wrap up of the movement of the main Asian stocks and how the market is going to perform in the coming week with regards to stocks, currencies, bonds, and commodities.