Data Routs Bears
Hints and fears are giving way to hard numbers. And the numbers are very hard on the bears. Last night’s secondary reads added to the better economic outlook, and coming ahead of important numbers from the US and China over the next two sessions saw bears capitulating after initially selling US stocks down. Despite modest gains at the close, the rebound and reversal of momentum could see Asia Pacific markets add to yesterday’s strong gains.
ADP job numbers and the New York ISM index continues to show expansion. Neither are considered major news, but coming ahead of durable goods orders tonight and non-farm payrolls on Friday night they acted as a warning for those forecasting financial Armageddon. Higher appetite for risk manifested across markets, with shares, growth currencies and industrial commodities rising, and bonds selling off further.
Locally, investor’s fascination with a story about dodgy mortgage brokers was washed away by GDP data that showed the Australian economy was much stronger than estimated last quarter. The leverage of the financial sector to growth demands a re-rating of banks. Yesterday’s 3.5% surge in the bank sector may be just the beginning. Energy stocks are also a likely focus today, after another night of stable oil trading.
Frequently Asked Questions about this Article…
Recent economic data, including ADP job numbers and the New York ISM index, is showing expansion, which is positively impacting stock markets by increasing risk appetite among investors.
Upcoming important economic numbers from the US and China are influencing market trends by causing bears to capitulate and contributing to a rebound in stock markets, particularly in the Asia Pacific region.
Bears are capitulating due to better-than-expected economic data, which is improving the economic outlook and reversing negative momentum in stock markets.
The financial sector, particularly banks, is seeing increased investor interest due to stronger-than-expected GDP data in Australia. Energy stocks are also likely to be a focus following stable oil trading.
Recent GDP data indicates that the Australian economy is performing much stronger than previously estimated, which is positively influencing investor sentiment and stock market performance.
The current economic outlook, characterized by a higher appetite for risk, is leading to a sell-off in bonds as investors shift their focus to shares, growth currencies, and industrial commodities.
The bank sector might see continued growth due to its leverage to economic growth, as evidenced by a recent 3.5% surge following strong GDP data in Australia.
Durable goods orders and non-farm payrolls data are significant as they provide further insights into economic expansion, acting as a warning against overly pessimistic forecasts and influencing market dynamics.
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