Asia markets tumble at open amid central bank jitters : 12.09.2016
NIFTY Fut : SELL ZONE
BANKNIFTY FUT : SELL ZONE
Click Here & Register To Get 2 days Trial Tips
Down Under, ASX 200 was down 2 percent, weighed heavily by the energy sector, which was down 3.31 percent, the materials subindex, which shed 2.98 percent, and the financials sector, which was lower by 1.95 percent.
Asian shares opened in the red on Monday after a sharply lower finish for major US indexes on Friday amid concerns central banks will become less accomodative. Down Under, ASX 200 was down 2 percent, weighed heavily by the energy sector, which was down 3.31 percent, the materials subindex, which shed 2.98 percent, and the financials sector, which was lower by 1.95 percent. The Japanese benchmark index Nikkei 225 shed 1.4 percent; South Korea's Kospi fell 1.62 percent in Asian trade. Mainland China markets slumped at the open: The Shanghai composite fell 1.75 percent and the Shenzhen composite shed 2.22 percent. In Hong Kong, the Hang Seng index slid 2.42 percent. "Traders have been quick to price in worst case scenario as interest rate rise jitters start taking hold and have resulted in some fairly assertive moves in bond, equity, and forex asset classes," said Stephen Innes, senior trader at OANDA, in a Monday note. The rising risk sentiment was because "one, the ECB did not extend QE, provoking a sell-off in bond markets, which fed into the medium to long-end US bond curve. Two, traders have convinced themselves the Fed are marching out Leal Brainard, a mega-dove, to bang the Fed's September rate hike drum," he added. Fed Governor Lael Brainard was scheduled for a surprise speech at the Chicago Council on Global Affairs later on Monday. Other recent Fed speakers have also sounded more hawkish notes. On Friday, Boston Fed President Eric Rosengren had said that the US economy has proven to be more resilient to exogenous risks and that "gradual tightening is likely to be appropriate." Rosengren's speech was cited by traders as a catalyst for the market volatility, said Chris Weston, chief market strategist at IG, in his morning note.. In company news, Samsung weighed on the Kospi, with its shares dropping 6.01 percent, extending losses from the previous session after the South Korean firm and several airlines urged all customers to stop using the Galaxy Note 7 smartphones amid concerns over fire-prone batteries. On the data front, Japan's July core machinery orders rose a larger-than-expected 4.9 percent from the previous month, which suggested that private capital expenditure might have picked up. Crude oil prices continued to decline; global benchmark Brent traded down 1.42 percent, or $0.68, at $47.34 a barrel and US crude futures were lower by $0.73 at $45.15. Spot gold slipped 0.11 percent to $1,326.2 an ounce by 9:41 am HK/SIN time. US markets all shed more than 2 percent on Friday, with the Dow Jones industrial average down 2.13 percent at 18,085.45, the S&P 500 finishing lower by 2.45 percent at 2,127.81 and the Nasdaq composite ending down 2.54 percent at 5,125.91. "The big mover on Friday was undoubtedly implied volatility," Weston said. "The VIX (US volatility index) had the biggest move since the U.K. referendum, gaining 39.9 percent." On Monday, China will release August new yuan loans, August foreign direct investment and August money supply and India's August consumer price index (CPI) and August industrial production were due.
NIFTY Fut : SELL ZONE
BANKNIFTY FUT : SELL ZONE
Free Intraday Tips : Join Our Whatsapp No : 9841986753
Down Under, ASX 200 was down 2 percent, weighed heavily by the energy sector, which was down 3.31 percent, the materials subindex, which shed 2.98 percent, and the financials sector, which was lower by 1.95 percent.
Asian shares opened in the red on Monday after a sharply lower finish for major US indexes on Friday amid concerns central banks will become less accomodative. Down Under, ASX 200 was down 2 percent, weighed heavily by the energy sector, which was down 3.31 percent, the materials subindex, which shed 2.98 percent, and the financials sector, which was lower by 1.95 percent. The Japanese benchmark index Nikkei 225 shed 1.4 percent; South Korea's Kospi fell 1.62 percent in Asian trade. Mainland China markets slumped at the open: The Shanghai composite fell 1.75 percent and the Shenzhen composite shed 2.22 percent. In Hong Kong, the Hang Seng index slid 2.42 percent. "Traders have been quick to price in worst case scenario as interest rate rise jitters start taking hold and have resulted in some fairly assertive moves in bond, equity, and forex asset classes," said Stephen Innes, senior trader at OANDA, in a Monday note. The rising risk sentiment was because "one, the ECB did not extend QE, provoking a sell-off in bond markets, which fed into the medium to long-end US bond curve. Two, traders have convinced themselves the Fed are marching out Leal Brainard, a mega-dove, to bang the Fed's September rate hike drum," he added. Fed Governor Lael Brainard was scheduled for a surprise speech at the Chicago Council on Global Affairs later on Monday. Other recent Fed speakers have also sounded more hawkish notes. On Friday, Boston Fed President Eric Rosengren had said that the US economy has proven to be more resilient to exogenous risks and that "gradual tightening is likely to be appropriate." Rosengren's speech was cited by traders as a catalyst for the market volatility, said Chris Weston, chief market strategist at IG, in his morning note.. In company news, Samsung weighed on the Kospi, with its shares dropping 6.01 percent, extending losses from the previous session after the South Korean firm and several airlines urged all customers to stop using the Galaxy Note 7 smartphones amid concerns over fire-prone batteries. On the data front, Japan's July core machinery orders rose a larger-than-expected 4.9 percent from the previous month, which suggested that private capital expenditure might have picked up. Crude oil prices continued to decline; global benchmark Brent traded down 1.42 percent, or $0.68, at $47.34 a barrel and US crude futures were lower by $0.73 at $45.15. Spot gold slipped 0.11 percent to $1,326.2 an ounce by 9:41 am HK/SIN time. US markets all shed more than 2 percent on Friday, with the Dow Jones industrial average down 2.13 percent at 18,085.45, the S&P 500 finishing lower by 2.45 percent at 2,127.81 and the Nasdaq composite ending down 2.54 percent at 5,125.91. "The big mover on Friday was undoubtedly implied volatility," Weston said. "The VIX (US volatility index) had the biggest move since the U.K. referendum, gaining 39.9 percent." On Monday, China will release August new yuan loans, August foreign direct investment and August money supply and India's August consumer price index (CPI) and August industrial production were due.
