Asia Pacific Market Open Talking Points
- Worst US retail sales since 2009 sparked market-wide risk aversion as S&P 500[1] closed down
- USD[2] little changed due to earlier gains when Germany narrowly avoided technical recession
- Fading upside momentum, fundamental risks leave equities at risk. Asia stocks to trade lower?
Find out what retail traders’ equities buy and sell decisions[3] say about the coming price trend!
3 Things to Know Before Trading APAC Markets
1) Dismal US Retail Sales Data Sparked Market-wide Reaction
Delayed US retail sales (for the period of December) contracted 1.2% m/m which was the largest subtraction since 2009. Looking at the immediate chart below, financial markets worldwide defaulted to risk aversion. The S&P 500 gapped lower and closed to the downside while DAX, Nikkei 225 and ASX 200[4][5][6] futures all fell in tandem. More boradly, US shares are showing signs of fading upside momentum[7].
Financial Markets Reacting to US Retail Sales Data
Chart Created in TradingView
US 2-year government bond yields fell as prices rose, signaling a flight to safety and a reduction in hawkish Fed monetary policy expectations. The anti-risk Japanese Yen[8] ended the day little higher while the pro-risk Australian and New Zealand Dollars were mostly little changed. The haven-linked US Dollar[9] saw a similar result, finishing the session close to flat. While it dropped sharply on the retail sales reports, that only earsed earlier gains.
2) Germany Narrowly Avoided a Technical Recession, For Now
The
