Jonny Hart speaks to APAC Senior Market Analyst Jeffrey Halley about news impacting the market and the week ahead.
Risk aversion is sweeping Asia today after a torrid New York session on Friday. China is leading the way as Covid-zero restrictions are tightened in Shanghai and mass testing is enacted in an area of Beijing. Fears of a sharp slowdown in China’s growth are pummelling Asian markets. We look at what’s moving in Asian markets today.
We then move to currencies where the US Dollar has rallied today after a strong showing on Friday. We look at Asia FX, including the Yuan as well as the Sterling and Euro. Hint: nothing is going up. We also quickly tough on oil which is also much lower despite European “smart sanction” talk.
The weekend French presidential elections gave Euro a temporary respite that quickly fizzled out. Euro (and others) are down heavily today. We look at the impact of monetary policy and weak data on currencies right now and with respect to the EURO, I highlight it breaking a 4-decade support line.
Looking to the week ahead, the calendar has quite a number of tier-one releases including GDPs, a Bank of Japan policy decision, and China PMIs. However, it will be the US earnings calendar that will have the last say on the week with the tech giants due to report. Will it be FAANG or FLOP?
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