Stale long positioning from short-term players was further trimmed overnight on Wall Street. A lack of new drivers, and fading momentum, was enough for impatient traders to head for the exit door after NYC announced more Covid-19 restrictions. The S&P 500 fell 1.16%, the Nasdaq fell 0.82%, and the Dow Jones also fell 1.16%.
That sentiment has spilt into Asia this morning, with position reduction the order of the day, and regional markets are fading. The Nikkei 225 has fallen 0.80%, with the Kospi down 0.55%. China’s Shanghai Composite is flat, but the CSI 300 has eased 0.35%, with Hong Kong falling 0.80%.
Singapore, Kuala Lumpur and Manila are 0.70% lower, with Taipei down 0.30%. Jakarta has bucked the trend, rising 0.30% ahead of expected supportive measures by Bank Indonesia today. Australian markets have also eased modestly, the ASX 200 and All Ordinaries down 0.15%.
Today appears to be another one of consolidation and profit-taking, with Europe set to follow suit. Headline driven spikes in volatility are possible when markets are in ranging mode. Still, investors should put their perpetually bullish hopes aside and should enjoy the tranquillity; it is unlikely to last.