Thursday, 18 July 2019 12:36 GMT
img

Stocks Up On US-China Trade Hopes in APAC Trade, Fed Decision Due




(MENAFN - DailyFX)

Asian Stocks Talking Points:

All main stock indexes were comfortably higher Hopes of a US China trade thaw are underwriting the gains, and these can be fleeting The prospect of global monetary easing doesn't hurt either

Join our analysts for live, interactive coverage of all major economic data at theDailyFX Webinars . We'd love to have you along.

There was a liberal smattering of green across all major Asian mainboards Friday, hardly surprising given the international lead.

Stocks soared on a combination of bullish factors. The first was Tuesday's news that Donald Trump reported an amicable telephone conversation withhis Chinese counterpart Xi Jinping , in turn fueling hopes that the two will keep talking on trade into this month's Group of 20 meeting in Osaka. The second came from the European Central Bank. Its President Mario Draghi stronglyhinted that more stimuluscould be on the way.

Mainland Chinese stocks soared with the Yuan also higher. The Shanghai Composite was up by over 1.5% in the middle of its afternoon. Shenzhen was up by 2.3% with Hong Kong's Hang Seng adding a similar amount.

Australia'sASX 200saw gains too, boosted by its material sector which gained sharply.Oilprices made big gains in the wake of Mr. Trump's optimistic appraisal and that as usual helped the entire raw materials complex. Rio Tinto was up as was the Fortescue Metals Group. The index overall looks set to break a technical uptrend on its daily chart which has stood since early February. This could put record peaksfirmly back in sight . In Japan, the Nikkei added 1.7%. Softbank led the charge.

Wednesday's economic data showed that Japan's exports fell 7.8% on the year in May, a sixth straight month of falls. However even this gloomy data was insufficient to quell market optimism.

TheUS Dollarmade gains against a basket of its major traded peers as Wednesday's Federal Reserve monetary policy meet loomed large. Futures markets still seem to think that US rates are headed lower despite last week's stronger retail sale and industrial production numbers. However, no move is expected this month and the Fed now has plenty of competition in the monetary easing stakes.

USD/JPYis recovering only very gradually from the sharp falls of late May.

US Dollar Vs Japanese Yen, Daily Chart

However there seems little appetite to revisit recent lows against the current backdrop of extremely dovish central banks across the developed world.

Resources for Traders

Whether you're new to trading or an old hand DailyFX has plenty of resources to help you. There's ourtrading sentimentindicator which shows you live how IG clients are positioned right now. We also holdeducational and analytical webinarsand offer trading guides, with onespecifically aimed at those new to foreign exchange markets . There's also aBitcoin guide . Be sure to make the most of them all. They were written by our seasoned trading experts and they're all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter @DavidCottleFXor use the Comments section below to get in touch!


MENAFN1906201900760000ID1098656621


Stocks Up On US-China Trade Hopes in APAC Trade, Fed Decision Due

Authors_Square_PromoteArticle_Ink2019

  Most popular stories  

Day | Week | Month