Equity Brief Profit-taking in Asian stocks ahead of U.S GDP

A summary of the stock market trends & highlights from today's Asian mid-session.

Stock market snapshot as of [26/07/2019 0500 GMT]

  • Ahead of the European opening session, Asian stocks markets dropped into the red following overnight weakness seen in the key benchmark U.S. stock indices. The S&P 500 and Nasdaq 100 have shed -0.53% and 1.01% respectively after hitting fresh all-time highs on Wed, 24 Jul.
  • Mix U.S. earnings reports on key corporations are also giving the excuse to profit-take ahead of the weekend. Positive earnings results from Google parent Alphabet and Intel that have managed to beat estimates while e-commerce juggernaut Amazon’s earnings disappoint.
  • Japan’s Nikkei 225 which has declined by 0.58% below the 21900/22000 medium-term range resistance reinforced by downbeat earnings results from component stocks; Nissan Motor shed 2.5% after it unveiled its biggest restructuring plan in a decade in the wake of a collapse in its quarterly profit.
  • The worst performer as at today’s Asian mid-session is Singapore’s STI which has tumbled by 0.85%, its worst intraday drop in three weeks. The biggest drag is from a key component stock, Singapore Telecommunications that has dropped by 4.3% after ex-dividend; on track for its worst weekly performance in three years. Also, economic growth in Singapore continues to deteriorate where June’s industrial output fell -6.9% y/y from -2% y/y in May that recorded its 4th consecutive month of y/y decline.
  • German DAX CFD futures is showing a modest gain of 0.30% at this juncture after it tumbled by 1.28% to close back below 12500 at the end of yesterday, 25 Jul European session. Also, ECB has signalled a rate cut on its key deposit rate in the coming Sep meeting after yesterday’s monetary policy meeting.

Up Next

  • U.S Q2 preliminary GDP at 1230 GMT where consensus is set at 1.8% y/y that may show business investment posted its first decline in three years.

Corporate Highlights

Macroeconomic Calendar

*Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.