Equities recover as US announces sanctions

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Equities recover as US announces sanctions

Asian equities stage a sanctions dead-cat bounce

A sense of "it could have been worse" swept New York late in the session after the White House announced its incremental n sanctions. That allowed US equities to reverse some of their losses, helped by decent economic data, but they still finished in the red. The S&P closed 1.02% lower, the Nasdaq lost 1.23%, and the Dow Jones closed 1.42% in the red. The buy-the-dippers are out in Asia as well as the e news ticker goes quiet for now. Futures on the S&P are up 0.40%, the Nasdaq by 0.55%, and the Dow Jones by 0.55%.

 

The same sentiments are also lifting Asian markets cautiously higher today after a torrid week so far. Japan is closed, but the South Korean Kospi is up by 0.20%. In China, the Shanghai Composite and CSI 300 have risen by 0.55% while Hong Kong is 0.65% in the green.

 

Weak results from OCBC have pushed Singapore 0.75% lower but elsewhere in ASEAN, markets are higher. Taipei has risen by 0.25%, Jakarta by 0.40%, Kuala Lumpur by 0.75%, Bangkok is flat, and Manila has eased 0.70% lower. Down in the lucky country, Australian indexes are in the green, helped along by the commodity rally overnight. The ASX 200 is 0.35% higher, while the All Ordinaries has rallied by 0.50%.

 

European markets will struggle to match Asia's rally although if the e news ticker goes quiet for a couple of days, I fully expect equities globally to continue rallying on a no news is good news play. Don't be fooled though, the moment the e situation darkens, so will equity markets.

Source: Equities recover as US announces sanctions