Fundamental analytics

Asian indices are trading in the green zone

1. The People's Bank of China kept the interest rate unchanged

2. China and the US note progress in trade negotiations

Asian indices demonstrate mainly positive dynamics at the beginning of the trading week amid the absence of important news on the market. The People's Bank of China kept the interest rate unchanged at 4.2%. Market reaction was minimal. At the end of the day, the Japanese Nikkei 225 grew 0.25%, the Chinese Shanghai Composite showed a symbolic increase of 0.05%, Hong Kong Hang Seng + 0.02%, South Korean KOSPI + 0.17%.

On Tuesday, the market situation has not changed significantly. Investors reacted neutral to the comments of the representatives of Washington and Beijing on the progress in trade negotiations. Against the background of these statements, it became known that China through the WTO is trying to achieve the introduction of retaliatory measures against the United States due to the sanctions imposed in 2007-2012. The main indices maintained moderately positive dynamics. The Japanese Nikkei 225 did not trade on Tuesday, the Chinese Shanghai Composite grew 0.50 %%, the Hong Kong Hang Seng gained 0.23%, and the South Korean KOSPI jumped 1.28%.

Trading on the foreign exchange market is still very calm. There is no important news in the economic calendar, so trading volatility remains low.

The pair USD / THB at the beginning of the week is trading in a narrow range. Thailand has a day off on Wednesday, so the volatility of the USD / THB movement will remain low. The economic calendar of Thailand this week is no longer important news, so the main driver of the movement will be the US dollar.

The USD / SGD pair has a bearish trend locally, amid widespread decline in the dollar On Wednesday, Singapore will publish data on the consumer price index. On Friday, it is expected to publish important data on the labor market and industrial production.

The pair USD / INR is still trading in a very narrow range. This week there is no important news in the economic calendar of India, so the US dollar will remain the main driver of the USD / INR pair movement.

 

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