- Sluggish prints of Chinese GDP wanes market optimism amid a light flow of data/events.
- US tariffs on the EU goods, doubts over the Brexit keep risk-tone in check.
- Policymakers’ comments will be the key amid a lack of major catalysts ahead of the key Saturday.
With the decline in China’s Gross Domestic Product (GDP) and downbeat comments from Stats Bureau weighing over upbeat Industrial Production, Asian stocks refrain from further recovery during the Pre-European open session on Friday.
Adding to the market’s worries are activation of the United States’ (US) tariffs on the European Union (EU) goods, together with the White House Economic Adviser Larry Kudlow’s measured comments on the scope of the US-China trade deal.
Furthermore, doubts over the United Kingdom’s (UK) Prime Minister (PM) Boris Johnson’s ability to get his Brexit deal pass through Saturday’s special Parliament session and mixed comments from the central bank policymakers of the US, EU, and Australia kept the traders troubled.
As a result, the MSCI’s index of Asia-Pacific shares outside Japan seesaws around -0.1% while Japan’s NIKKEI benefited from hopes of further stimulus measures while shrugging off inflation data. Moving on, HANG SENG stood modestly changed while ASX 200 and NZX50 take rounds 0.60% loss by the press time. Additionally, Indian BSE SENSEX stands on the positive side with 0.30% being in green.
Given the lack of major catalysts up for publishing, investors will keep a close tab over the Federal Reserve (Fed) and the Bank of Canada’s (BOC) policymakers’ comments, up for publishing during the later part of the day considering the start of Fed’s blackout period from tomorrow onwards.