Asian stocks are softer as they play up to losses at night in Wall St
At the same time, we see US stock futures higher by 0.5%, while government bonds are also up with 10 years giving higher with 1.4 bp to 2.415% currently. So, despite the losses in Asian trade so far, it does not give a healthy impression of optimism in markets ahead of European trade.
The exception to the losses today is the Hang Seng index, which is down 1
One of the remaining issues last year in markets was the risk of quickly and strongly restoring the risk after a setback in the US and China trade rhetoric. Now the theme is being tested again, but this time investors must also understand the consequences of a trade dampening against a slowing global economy.
So there will be something to watch out for. Greed vs. Fear – the endless fight.
A bright spot for Asian stocks and risks in general is that the seller seems to be quite stretched now, if you go to the 14-day RSI:
But I expects that the biggest question will be that investors value the EM and Asian equities as cheap, despite the downturn in the past week? At some point, you would expect a proper rally, but given ongoing trading tensions, I expect it will be difficult for stocks to pull off a sustainable rally over the next few weeks.