Directionless Asia Waits On China, ECB Forecast Renews Growth Fear, Futures Point To Soft Open In US

Shares of Twitter were moving lower in early trading which added to the general aura of negativity in the market today.
Thomas Hughes
Chart businesses falling

Asian Markets Were Mixed On Thursday

Asian markets were mixed on Thursday despite a strong move in the regions leading communication technology conglomerate. Softbank has announced the largest share buyback program in the company’s history, worth about $5.46 billion, and sparked a 17% surge in shares of the Tokyo listed stock. The Nikkei, however, did not move higher showing caution within the broader market and posted a loss near -0.60%.

The Kospi reopened from the Lunar New Year Holiday to little fanfare. Trading was light, volume was low, and the index closed down -0.04%. In stock news, shares of chipmaker SK Hynix advanced 1.05% in a move echoing strong gains in US-listed chipmakers on Wednesday. Australia bucked the trend and moved higher, led by a1.75% increase in the financial sector, posting a 1.10% gain for the ASX 200. All sectors were positive.

ECB Bulletin Renews Fear Of Slowing Growth

The ECB released their first Economic Bulletin and Outlook for 2019 and the outlook is dire, sort of. The ECB has lowered their growth targets for this year and next as effects of geopolitical tensions drag on international business. The caveat is that economic expansion is still expected and underpinned by economic conditions (within the EU), favorable labor market conditions, and wage growth. The biggest fear is US/China trade relations, a factor that may improve significantly by the end of this month.

EU indices moved lower on the news after spending much of the morning in the red. The DAX extended a -1.0% loss to -1.80% at midday with the CAC not far behind at -1.2%. The FTSE was trading at a more moderate -0.35% but still down on the day. In the UK, the BOE decided to hold rates unchanged in a unanimous decision. There was a change in stance, noting downside risks, and weakened the pound versus the dollar.

Futures Point To Weak Open For US Stocks

Futures trading pointed to a weak open for US stocks on Thursday morning. The major indices were all indicated to open with losses in the range of -0.65% to -0.75 led by the tech-heavy NASDAQ Composite. The decline is due to earnings and Fed angst as a number of influential members are scheduled to speak. Members are expected to talk in favor of patience in regards to policy and rate-hike trajectory, talk that would weaken the dollar if not for the ECB and BOE dovishness.

In earnings news shares of Twitter were moving lower in early trading which added to the general aura of negativity in the market today. Twitter beat on the top and bottom lines but only a little, the problem is the company gave an unfavorable sales forecast that sent shares down by -8.0%. Earnings will remain in focus today and tomorrow as another couple dozen S&P 500 companies are scheduled to report. Other reports delivered before the bell were mixed, most produced earnings and/or revenue above expectations but weak, weaker, or weakening outlook weighed on share prices.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.