Equities Mixed in Thin Trade Before US Independence Day, Jobs Data
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Asia Pacific Markets Talking Points
- Equities trade mixed in Asia Pacific markets
- Thin liquidity ahead of US non-farm payrolls
- S&P 500 futures pave way for further gains
Find out what retail traders’ equities buy and sell decisions say about the coming price trend!
Equities traded mixed during Thursday’s Asia Pacific trading session, with financial markets vulnerable to thinner liquidity ahead of the US holiday. Wall Street will be closed for trading due to Independence Day, but these conditions could persist into Friday on extended vacationing.
The Nikkei 225 traded about 0.3 percent to the upside heading into Tokyo’s close, with all sectors in the green apart from consumer discretionary (-0.53%). Australia’s benchmark ASX 200 rose over 0.4% while China’s respective Shanghai Composite was down about 0.3%.
Cautious optimism in equities continues to follow the aftermath of this weekend’s G20 Summit, where the world’s largest economies agreed to a trade truce. That has helped to lift sentiment in the near-term without diminishing prospects of aggressive easing from the Fed for now.
Top event risk for the remainder of this week is the US jobs report. Another disappointing outcome relative to economists’ expectations, which has been the case from the country for some time, could add fuel to Fed rate cut bets. But, this also risks placing a premium for liquidity.
S&P 500 Technical Analysis
S&P 500 futures, showing after-hours trade, continue making record-breaking progress to the upside. This follows a push through April highs where resistance was at 2961. Ahead lays the 50% Fibonacci extension at 3034 which could present itself as resistance.
S&P 500 Futures Daily Chart
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--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com
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.