Stock market snapshot as of [25/6/2019 0430 GMT]
- Negative news flows have been the main driver that have dampened risk appetite where a report from Washington Post that has cited a U.S. investigation on China Merchants Bank with relation to sanctions violations regarding North Korea. This news flow has triggered selling pressure across China banking stocks that has caused the China A50 and Hang Seng Index to be the worst underperformers as at today Asian mid-session; down by -2.12% and -1.31% respectively.
- Middle East geopolitical risk remains on red alert where Iran has issued a verbal warning to U.S. that the recent U.S. sanctions on Iran’s top leadership group means an end of diplomacy. The “safe haven” JPY has continued to benefit from such an environment where the USD/JPY has started to break below last Fri, 21 Jun swing low of 101.70 which has created a negative feedback loop back into Japanese equites. The Nikkei 225 is the 3rd worst underperformer so far, down by -0.62%.
- The S&P E-mini futures has also caught the “negative news flow flu” where it has inched down by -0.30% from yesterday, U.S session close to print a current intraday low of 2942 as at today Asian mid-session. Overall, its medium-term uptrend remains intact with key short-term support to watch at 2934.
- European stock indices CFD futures are in the red as well. Both FTSE 100 and German DAX are showing losses of around -0.40% at this juncture.
- No major European/U.K economic data releases and events later. The key event to note later will be U.S. Fed Chair Powell’s speech at 1700 GMT. Also, the release of U.S. housing and consumer confidence data earlier at 1300 GMT and 1400 GMT respectively.
*Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.
GAIN Capital UK Limited (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.