S&P 500 in a bearish barbeque, Asian stocks might falter further
- The recent leg of global-scale sell-off continues, as S&P closed at its lowest since April
- Apart from Wall St., Asian stocks drooled as well, amid nervous market momentum
- US Crude declined again in to 50s, uphill battle seemed to be a distant dream
- Yen likely to surge, as Asian stocks are gliding downstream
- USD may plunge, as FED is unlikely to hike rate, amid intense pressure from lawmakers including US president Donald Trump
As an aftermath of the disappointing Chinese economic data and cautious ECB policy announcement, market-wide risk level had been heightened. The S&P fell about 1.91% yesterday and announced that it had completely gone bearish.
According to the market terms, if over 50% stocks in a market experience a fall above 20% from its initial public offering, the market should be termed as bearish and unfortunately, yet, bookishly, the Standard and Poor 500 had completely gone bearish and it is currently surfing below its April low.
The extension of this recent leg of sorrows has been stretched, as the Johnson and Johnson scandal had been taking hold of Wall St. and investors are still in a shock, knowing that famous pharma company had been allegedly using cancer-causing asbestos in its baby powder since 1971. Followed by the report, the J&J had lost over 10 percent of its market capital, and around 40 billion had been wiped out in a single session.
Amid the global scale sell-off, the European tech stocks continued to perform poorly and German economic data had not signaled any upbeat momentum. Asian stocks may falter further, despite wishful trade talk and initiatives from both US and China, in the wake of a weathering risk of market aversion.
S&P 500 daily chart
The Standard and Poor 500 had been on the verge of tasting the yearly low and currently surfing on 2018-April lows. The Nikkei 225 extended losses and ASX200 plunged further along with an intense & increasing risk of AUD souring, as Chinese economic data directly affects the Australian dollar.
When this report is being written, the 17thof December, 2018, GMT. 16.00, the Wall St. had been taking heavy battering along with Asian stocks, however, US bunds showed resilience. None the less, the investors should be cautiously optimistic over the FED meeting due on the 19thof December, Wednesday, as an interest rate hike is unlikely, which might cause an abrupt market flip-flop and the investors should show a little bit of bravery ahead of FED meeting, as a quick gain followed by FED meeting might have been on the cards.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]