Soft US job data send equities higher
Overnight, soft US ADP Employment data saw Wall Street rapidly price in less Fed tightening, spurring an impressive rally on Wall Street. With Wall Street clutching at any straw for an excuse to buy, the S&P 500 jumped 1.84% higher, the Nasdaq leapt to a 2.69% gain, and the Dow Jones rallied by 1.29%. US futures have paused for breath in Asia, all three indexes are unchanged.
Asian volatility appears to be suffering a holiday impact, rising more cautiously thanks to holidays in mainland China, Hong Kong, Taiwan, and Thailand. Japan’s Nikkei 225 has risen by 1.15%, with South Korea’s Kospi adding just 0.42%. Singapore is just 0.10% higher, with Kuala Lumpur easing by 0.25%, Jakarta gaining 0.90%, and Manila unchanged. Higher oil prices overnight may also be tempering gains in Asia.
In Australia, markets are slavishly following the US lead. The ASX 200 is 0.65% higher, while the All Ordinaries has risen by 0.80%, with New Zealand edging 0.30% higher.
European markets rallied overnight, likely on hopes that OPEC+ would ramp up oil production and with Wall Street’s climb. Oil prices closed around 2.0% higher in New York, with the OPEC+ announcement mere window dressing. That is likely to limit gains in Europe initially, especially with the UK away, weekend event risk, and much of Europe on holiday on Monday.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.