Sentiment swing to weigh
Asia Pacific shares will open under pressure today after share market sentiment reversed to negative during the US session overnight. Gains on European bourses and in industrial commodities initially pushed the S&P 500 index higher, but despite an expansion in consumer credit and labour market conditions, sellers quickly took control and forced the major indices into the red. Most measures were down around 1% before weaker job opening and mortgage application reports were released, snuffing out any last minute rally and ensuring US stocks finished on their lows.
Futures markets for the Australian index capitulated, shedding almost 100 points before closing down 82 for the night session. This may overestimate the potential for falls today. Bank stocks are likely to hold the key in light of their market leading 3% gains yesterday. If the international support for the sector re-appears today losses will be moderated. This is a reasonable expectation in light of the lower levels of AUD this morning.
Macro data will attract investor attention. The Australian jobs report for August is expected to show a gain of 5,000 jobs and an unemployment rate of 6.2%, as the participation rate pulls back from July’s spike to 65.1%. Inflation data in China may shift sentiment by shedding light on growth pressures, and Japan will be a focus as office vacancies, investment flows and PPI numbers drop.
Frequently Asked Questions about this Article…
Asia Pacific shares opened under pressure due to a negative sentiment shift during the US session overnight, where major indices fell despite initial gains in European markets and industrial commodities.
The US market's negative performance led to a significant drop in Australian futures, which shed almost 100 points before closing down 82 for the night session, indicating potential pressure on the Australian market.
Bank stocks are crucial as they experienced a 3% gain recently. If international support for the sector continues, it could help moderate potential losses in the market.
Investors should focus on the Australian jobs report, which is expected to show a gain of 5,000 jobs and an unemployment rate of 6.2%. Additionally, inflation data from China and economic indicators from Japan, such as office vacancies and PPI numbers, are important.
China's inflation data could shift market sentiment by providing insights into growth pressures, which may influence investor decisions and market movements.
The latest Australian jobs report is expected to show an unemployment rate of 6.2%, with a gain of 5,000 jobs.
Japan's economic data, including office vacancies, investment flows, and PPI numbers, are significant as they provide insights into the country's economic health and can influence regional market sentiment.
Despite initial gains, the US market turned negative due to weaker job opening and mortgage application reports, which overshadowed positive consumer credit and labor market conditions.
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