Asian Stocks Fade Investors Look to US Data, Trump/Putin Meet
ASIAN STOCKS TALKING POINTS:
- Asian stocks were slightly lower in the main
- Chinese growth data sprung no nasty surprises
- US retail sales will be in focus, as will Putin and Trump’s Finland meeting
The DailyFX Third-Quarter Fundamental and Technical Forecasts are out now.
Asian stocks couldn’t carry last Friday’s strong Wall Street lead with them into a new trading week with modest falls evident on Monday.
There seemed to be no one particular reason behind equity’s apparent lack of enthusiasm, but all major bourses were lower as their closes loomed, if not by much. The Shanghai Composite was down 0.4% with the ASX down 0.4% and the Hang Seng in the red by 0.2%. The Nikkei 225 was closed for a holiday, depriving other markets of what can often be the key regional bellwether.
Trade worries remained very much to the fore, and may have been dampening sentiment. The day’s major Asia Pacific economic release came in the form of official Chinese Gross Domestic Product data for 2018’s second quarter. These met forecasts, by and large. The world's second largest economy expanded by 6.7% on the year, still above the official 6.5% target set by Beijng earlier this year.
Major currencies were stuck to ranges as the markets looked to those Chinese numbers and then, when those came in as expected, seemed to settle down to await US retail sales figures which are coming up later in the session. Traders are also keen to see what comes from US President Donald Trump’s meeing with his Russian counterpart Vladimir Putin. The two will meet later in Helsinki.
Monday’s economic data schedule is not well populated beyond those likely-key US retail sales figures, the Empire manufacturing survey and Eurozone trade levels for May.
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--- Written by David Cottle, DailyFX Research
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