News & Analysis

Today in Asia – Risk-Off

May 23, 2019

By Deepta Bolaky

Equity Markets

Risk-off sentiment prevails in Asia after reports that Trump administration is considering to blacklist other major Chinese technology companies dominated headlines. Hikvision, the world’s largest supplier of video surveillance in under scrutiny.

World Equity Indices (% Change)

Source: Bloomberg Terminal

As of writing, the ASX200 was also down by 14 points. Looking at the best and worst performers of the Australian benchmark, we can see that the energy, financial and materials sectors were the biggest laggards.

ASX200 – All Sector Groups

Source: Bloomberg Terminal

Currency Markets

In the FX space, the US dollar edged higher against nearly all G10-peers aside from the safe-haven currencies like the Japanese Yen and the Swiss franc.

Source: Bloomberg Terminal

The price movement in the currency markets remains contained as traders were deprived of any market-moving news and a relatively empty calendar.

The Antipodeans are poised to the downside as risk-aversion added further bearish pressure on the currencies. The Aussie dollar is at 68.76 US cents.

The British Pound fell further against its G10-peers. Traders received a flow of bearish Brexit headlines this morning. The Prime Minister defied an attempt to be forced out yesterday and apparently has been able to buy herself an extra 36 hours.

Oil Markets

Oil reports received so far this week are on the bearish side, adding pressure on oil prices. The EIA reports show a build-up in crude oil inventories by 4.7 million barrels compared to the previous week.

UKOUSD and USOUSD (Hourly Chart)

Source: GO MT4

Looking Ahead

GDP, Markit Manufacturing, Services and Composite PMI (Germany)

Jobless Claims, Markit Manufacturing, Services and Composite PMI & New Home Sales (US)

Disclaimer: Articles and videos from GO Markets analysts are based on their independent analysis. Views expressed are of their own and of a ‘general’ nature. Advice (if any) are not based on the reader’s personal objectives, financial situation or needs.  Readers should, therefore, consider how appropriate the advice (if any) is to their objectives, financial situation and needs, before acting on the advice.