Stock market regroups at the open this morning
Bargain hunters appear to be testing sentiment as the market opens this morning, concerned that recent selling may dry up.
Investors are facing a trade-off between macro themes. The limited US market reaction to increased certainty of a December rate hike is encouraging. US stock markets consolidated last night as investors continued to focus on a better than expected earnings season and ongoing prospects for domestic economic growth.
On the other hand, concerns about China and weaker commodity prices appear to have been the dominant negative for market sentiment in recent days. This has been fuelled by worse than expected trade and inflation data as well as concerns that the Fed rate hike will increase pressure for capital flows from emerging markets. Against this background, China’s industrial production and retail sales figures due for release after the market closes at 4.30pm have the potential to reset the tone for near term market sentiment.
Westpac will trade ex-dividend this morning, which will strip 12 points from the ASX 200 index from the open, preventing what would otherwise have been small gains for the wider market on the open.
Frequently Asked Questions about this Article…
The stock market is currently experiencing mixed sentiment. While bargain hunters are testing the waters, concerns about China and weaker commodity prices are affecting market sentiment negatively.
The US stock market has shown limited reaction to the increased certainty of a December rate hike, which is encouraging for investors. The focus remains on a better-than-expected earnings season and prospects for domestic economic growth.
China's economic indicators, such as trade and inflation data, have been worse than expected, contributing to negative market sentiment. Upcoming industrial production and retail sales figures could further influence market sentiment.
Weaker commodity prices are a concern because they can indicate slowing global demand, particularly from major economies like China, which impacts investor confidence and market sentiment.
Westpac trading ex-dividend means that its stock price will drop by the dividend amount, which in this case will strip 12 points from the ASX 200 index, affecting the market's opening performance.
A Fed rate hike could increase pressure on capital flows from emerging markets, as higher US interest rates might attract investment away from these markets, potentially leading to economic challenges.
Investors are focusing on macro themes, such as the US earnings season and domestic economic growth prospects, while also weighing concerns about China and commodity prices.
China's upcoming industrial production and retail sales figures, due for release after the market closes, have the potential to reset the tone for near-term market sentiment.
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