Fra LCG London Capital Group: Markets look cautious, Aussie dollar hits 4-month low 06:24am GMT | March 6th 2019 Wall Street closed lower for a second straight session as investors weighed up the prospects of a trade deal against fragile global economic health. The Dow spent much of the session hugging the flat-line before ending just 0.05% lower. Asian markets traded within a narrow range and in a mixed fashion. Chinese stocks rallied in the hope of further stimulus. Elsewhere across Asia, any gains were capped by an increase in regional tensions as North Korea starts rebuilding key missile testing facilitates. Investors are also cautiously waiting for US – China trade cues or fresh catalysts on global growth. Investors aren’t prepared to run the current rally any further without more tangible evidence of progress towards a US – China trade deal or concrete evidence of improved global economic health. At the beginning of the week, China lowered its growth forecast to 6% -6.5%. Overnight, data showed the Australian GDP declined in the final 3 months of 2018, missing expectations. However, US data has been looking more robust with ISM non-manufacturing and new homes data smashing expectations in the previous session. A strong reading from Friday’s non-farm payrolls could spur another move higher in equities. It would support the US economic growth story, which will overshadow the Chinese slowdown concerns, particularly as talks are supposedly moving towards a positive conclusion. |
