Flood of Investors Piling into Global Equities, Asian Stocks Rise after Abe Election Win

Global equities led by Wall Street and Japan continue to display strength on Monday morning. Prime Minister Abe’s victory in Japan yesterday has helped bolster trading sentiment. President Trump will continue to be watched regarding his Federal Reserve leadership decision and tax reform in the States.

Tax Reform and Fed Decision are Talking Points, A Rush into Equities

Wall Street put in further record highs before going into the weekend. Economic data will be very light from the States today. Talking points among investors will be the decision President Trump will make regarding Federal Reserve leadership and his push for tax reforms. Investors continue to flood into equities and the Dow Jones Industrials, S&P and NASDAQ all deserve attention this week.

Election Victory Adds to Risk Appetite, Japan Investors Bolstered

The strong victory by Prime Minister Abe’s government in Japan yesterday has bolstered what has already been a solid amount of risk appetite on the Nikkei Index. The Japanese exchange has gained more than 1 percent today and is up nearly 7 percent the past month. The Yen has been weaker against the U.S Dollar and is near the important 114.00 mark. Manufacturing data will come from Japan early on Tuesday.

Spain and Italy in Focus via Politics, ECB Meeting will Highlight Week

Political concerns regarding Spain remain a factor for the Euro which continues to traverse weakened value. The Euro is near 1.1750 against the U.S Dollar. A Consumer Confidence reading will come from the European Union later today. Elections in Italy yesterday also showed a public desire for more regional autonomy. However, the European Central Bank’s upcoming monetary policy meeting this Thursday will be a key element for investors this week.

Fast Reversals Remain Prevalent, Gold Stung by Taste for Equities

The precious metal remains near 1275.00 U.S Dollars an ounce as it trades under pressure, which is a result of growing risk appetite on global equity exchanges. Traders may continue to look for downside potential, but fast reversals have been prevalent in Gold and may not be finished.

Canadian Consumer Spending, European Economic Conditions Sentiment

Canada will release its Wholesale Sales data at 12:30 and traders will look at the data carefully.

Yaron Mazor is a senior analyst at SuperTraderTV.

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