Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Most Asia Stocks Rise. US-China Trade Talks Next, S&P 500 May Fall

Most Asia Stocks Rise. US-China Trade Talks Next, S&P 500 May Fall

Daniel Dubrovsky, Contributor
What's on this page

Asia Pacific Markets Wrap Talking Points

  • Asia stocks follow Wall Street higher after relatively dovish Fed bolsters sentiment
  • ASX 200 declined alongside financials, AUD/USD saw minor gains on China PMI
  • President Donald Trump, Vice Minister Liu He have trade talks. S&P 500 might fall

Find out what retail traders’ equities buy and sell decisions say about the coming price trend!

As anticipated, Asia Pacific benchmark stock indexes generally followed Wall Street higher on the backdrop of a relatively dovish Fed. The central bank dropped the reference to further gradual rate increases and Fed Chair Jerome Powell said that the case for increasing benchmark lending rates weakened. This also weighed against the US Dollar as government bond yields tumbled.

In Japan, the Nikkei 225 climbed about 1.20% and China’s Shanghai Composite rose roughly 0.70% heading into the close. South Korea’s KOSPI increased by 0.40%. Australia’s ASX 200 meanwhile fared worse, contracting 0.37%. Losses were led by the Commonwealth Bank of Australia alongside financials which account for a third of the index.

Looking at foreign exchange markets, the pro-risk Australian and New Zealand Dollar aimed cautiously higher. AUD/USD rose after better-than-expected Chinese Manufacturing PMI data, but follow-through was lacking. Despite the beat, the numbers still indicate contraction. Understandably, the greenback weakened a little bit.

Over the remaining twenty-four hours, US PCE inflation data has been pushed back, placing the focus on trade negotiations. President Donald Trump and China’s Vice Premier Liu He are scheduled to meet at 3:00pm EST (20:00 GMT). Risks for stock markets seem to be tilted to the downside given that last week, investors took bets of a positive outcome on negotiations.

S&P 500 Technical Analysis

The S&P 500 had closed above a descending resistance line going back to October 2018, but prices remained within a range of resistance between 2,691 and 2,676. Meanwhile, negative RSI divergence shows that upside momentum is fading which at times can precede a turn lower. Sometimes this is not necessarily the case like with what happened in the Dow Jones. Resumption of the dominant downtrend has the index eyeing a near-term rising support line from earlier this month.

S&P 500 Daily Chart

Please add a description for the image.

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.