ZFX: Markets were in a narrow range amid US holiday with mixed noise
Stocks in Asia Pacific were mixed on Tuesday early trading session as overnight the US markets were closed for the Labor Day holiday. The dollar index was just little changed on Monday around 93 level.
Last Friday, the whole market was volatile after the Nonfarm Payrolls. The figures were generally good, matching the expectations, however, the Wall Street was still under pressure.
The NFP showed 1.371 million jobs were added in August, slightly less than the expectations around 1.4 million. But, the unemployment rate in August unexpectedly dropped to 8.4%, far lower than expected. As there is no fundamental change in the US economy, investors believe that such tumble was just a normal correction, and the three major indexes finally rebounded after the fluctuation.
ZFX analyst Jacob Leung said that “overvaluation” is still the market concerns over those tech stocks, continuing to cause sell-off pressure and drag the stock markets. On Tuesday morning, the Nasdaq futures is still trading lower.
Recently, the strength of the Nasdaq was the origin of the optimism. If the tech stocks were in the correction stage, it is expected that the sentiment will turn to be cautious, waiting for further news ahead.
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