Market Brief: In Limbo Between Oil Price Shock And Upcoming Fed


A summary of news and snapshot of moves from today’s Asia session.

  • Most Asian stock markets have traded lower on the backdrop of higher oil prices and ahead of the key economic event for this week, the outcome of the Fed FOMC meeting on this Wed, 18 Sep.
  • The worst underperformer as at today’s Asia mid-session is the Hong Kong’s Hang Seng Index where it has recorded an intraday drop of 1.00% for the 2nd consecutive day despite Hong Kong’s Chief Executive Carrie Lam’s announcement of dialouge sessions with the community to kickstart next week with the aim to ease the on-going domestic unrests that have lasted for over three months since Jun.
  • Catalysts for the current weakness seen in Hong Kong stocks can be attributed to “China related factors” where the USD/CNH (offshore yuan) has staged a biggest 3-day rally as it surged by 225 pips to print a current intraday high of 7.0861 at this time of writing. Secondly, the biggest weightage component stock in the Hang Seng Index, AIA has dropped by 1.9% to print a 2-week low of 78.10.
  • Japan’ Nikkei 225 is trading in the positive territory due to positive trade related newsflow where U.S. President Trump has announced that U.S. has struck trade agreements with Japan that can be implemented without U.S. Congress approval.
  • The S&P 500 E-mini futures has trading sideways in today’s Asia session; so far it has inched down by -0.08% to print a current intraday low of 2996 as it has covered the weekend  “gapped down” formed yesterday trigged by the risk of a prolong oil supply disruption caused by drone attacks on Saudi Arabia’s oil pipelines.

Up Next

  • Germany’s ZEW survey has continued to set alarm bells ringing by hitting multi-year lows. Seen as a leading indicator for growth, a lower reading only sees expectations for Germany to enter a technical recession rise. Keep Euro crosses on your radar.

Matt Simpson and Kelvin Wong both contributed to this article

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.