Treading Water
An indecisive night on global markets gives Asia Pacific investors little to trade on ahead of tonight’s key release of US non-farm payrolls. Shares, currencies and commodities all saw volatility drop, and most markets reversed themselves within the session. The noisy exception is oil, which gyrated through a 5% range as Hurricane Joaquin approaches the US east coast.
European data following yesterday’s China PMI’s pointed to mild expansion in Europe and the US, although some came in below forecast, forcing shares lower early in the overnight session. In Australia, retail sales for August are expected to bounce back from previous weakness for a consensus lift of 0.4%. Combined with news of disharmony at David Jones, local department store retailers may receive a boost.
Investors may welcome a quieter day after a highly volatile week. The market shed 4% before restabilising, and is now sitting on a 1.2% gain for the week. A significant change ahead of the Fed influencing jobs numbers looks unlikely. Energy stocks are a likely focus given the wild night in oil markets, but early indications point to a trimming of the weekly gain.
Frequently Asked Questions about this Article…
The global markets were indecisive, providing little direction for Asia Pacific investors. This was due to volatility dropping across shares, currencies, and commodities, with most markets reversing within the session.
Hurricane Joaquin caused significant volatility in the oil market, with prices gyrating through a 5% range as it approached the US east coast.
The latest European and US economic data pointed to mild expansion, but some figures came in below forecast, leading to an early drop in shares during the overnight session.
Australia's retail sales for August are expected to bounce back from previous weakness, with a consensus forecast of a 0.4% increase.
Local department store retailers in Australia may receive a boost due to expected improvements in retail sales and news of disharmony at David Jones.
The market experienced a highly volatile week, shedding 4% before restabilising and currently sitting on a 1.2% gain for the week.
Significant changes ahead of the US non-farm payrolls release are unlikely, as the market appears to be stabilising after recent volatility.
Energy stocks are likely to be a focus due to the recent wild fluctuations in the oil market, although early indications suggest a trimming of the weekly gain.
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