The ISM Non-manufacturing PMI data of the United States couldn’t delight the USD investors yesterday, where the services growth was not up to the level as expected. Therefore, the Asian stocks fell early this morning as the regional benchmark index dropped continuously for the fourth day.
Wall Street remained in a short range, but in a bullish channel so far this week where the SP500 index is currently trading at the 1826 level with a support levels present at 1821, 1811 and the psychological support area of 1800.
Stop Losses Hit
The Senate’s votes have gone in the favor of newly appointed Fed Chairman, Janet Yellen, who won the confidence vote comprehensively and would be looking after the central bank of the United States, and might be considered in the top powerful people of the United States.
The commodities market saw sudden volatility as this decision came out, where gold took an immediate dip from the 1246 level down to 1217, which surely have hit the stop losses of those whose buy positions were intact with tight stop losses. However, the metal bounced back within 5 minutes and started trading in its previous range of 1242.
The stocks of an oil processing company, Sinopec Shanghai Petrochemical, lost their value by nearly 6.3% which can be categorized to two factors including the increased supply of oil that lowered the prices somewhat and the overall downward dip of the Asian markets where the single-index model effect came into play. It means that when the stock market index falls, a number of shares also fall along with that, no matter how good they are performing at that particular time.
Japan’s Topix Drops
Japan’s Topix index also slumped slightly by 0.6 percent where the Japanese yen is acting strongly against the major pairs, hence leading to a bearish move in the stock market as well. However, much depends on the job numbers of the United States that are set to be released on Friday where NFP and the unemployment rate are what that matters a lot to the investors, all across the globe.
To contact the reporter of this story: Jonathan Millet at email@example.com