Uncertainty still looms large, as Asian markets get hit hard – Market Overview

Uncertainty still looms large, as Asian markets get hit hard – Market Overview

The Asian stock markets have suffered setbacks, with fears of a bubble forming in China’s markets causing abrupt falls of around 1% for Japan’s and China’s indices.

In Europe, ECB Vice President De Guindos has stated their intention to act by increasing the amounts of their asset purchase program should long-term interest rates suffer an upward process, jeopardizing the financing facilities they seek with their monetary policy. He has also commented that the ECB fears an inflationary process in the United States that could affect European treasury bonds. In a way, it seems the European Central Bank blames the United States for market instability. And somehow, this could be true, considering the difference in inflation in the United States and Europe and, above all, the inflationary expectations that have soared in North America.

Interestingly, the $1.9 trillion fiscal stimulus package pending approval by the Senate is now being perceived as a potential future cause of an inflationary process that could cause interest rate hikes and stop the bullish stock market.

Bonds stabilize, North American indices plunge.

For now, the fixed income market seems to have stabilized at previous levels, with a yield for the 10-year American bond at around 1.43%.

However, the North American indices started in the red, led by TECH100 that fell around 1% but still far from the support level located at 12,691 and whose loss would end the last uptrend, from a technical point of view.

F.X. market - the U.S. Dollar gains.

In the foreign exchange market, the U.S. dollar is the currency that benefits from this situation due to the rise in long-term interest rates and risk aversion.

At the beginning of the day, the U.S. Dollar rose against all its competitors, including the yen, especially against the euro.

Following De Guindos' comments, the EUR/USD went below the 100-day SMA line, breaking the 1.2000 psychological level.

If the pair closes in this range, it could open the way towards the main support of 1.1950, below which the market could begin talking of a change in the pair's trend.

Also contributing to this movement was the publication of negative data on retail sales in Germany, showing a drop of -4.5% in January, well below expectations.

Sources: Bloomberg, Reuters.

Maklumat/penyelidikan ini disediakan oleh Miguel Ruiz (“tpenganalisis penyelidikan”) dan tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan khusus individu. Penganalisis penyelidikan bertanggungjawab terhadap kandungan laporan penyelidikan ini, samada sebahagian atau keseluruhannya, memperakui bahawa pandangan mengenai syarikat dan sekuriti mereka yang dinyatakan dalam laporan ini jelas mencerminkan pandangan peribadi dan pedagang bertanggungjawab sepenuhnya ke atas risiko mereka sendiri.

Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.

Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).

Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.

Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.

JME Financial Services (Pty) Ltd, beroperasi sebagai ZA.CAPEX.COM, bertindak sebagai perantara antara pelabur dan Magnasale Trading Ltd, rakan kontrak untuk perbezaan yang dibeli oleh pelabur melalui ZA.CAPEX.COM, yang diberi kuasa dan dikawal selia oleh Cyprus Securities. dan Suruhanjaya Pertukaran dengan nombor lesen 264/15. Magnasale Trading Ltd adalah prinsip utama CFD yang dibeli oleh pelabur.