ZFX: Investor remain cautious amid mixed and choppy market
The Asian markets were mixed on Friday, following a mixed Wall Street overnight. Investors remain cautious as the progress of the US economic stimulus package is still uncertain.
In the late Asian session on Friday, the dollar jumped up, showing signs of risk aversion. The US futures drop, of which the DOW future is trading 150 points lower. This weekend, China and the US will hold a meeting to review the first phase of the trade deal, which may trigger profit taking activities.
On Thursday, the overall market sentiment was stable, however, forex and gold market were still a bit volatile. The US jobless claim data was positive, not only below the market expectations, but also dropping below 1 million level, implying an improving US labor market.
ZFX analyst Jacob Leung said that market sentiment will be just “ups and downs” if the relief bill can’t be moved forward. It should be noticed that from the move of these days, especially the gold price, the markets are quite speculative, despite no specific news.
ZFX analyst Jacob Leung said that, on the other hand, investors may not closely monitor the global coronavirus pandemic as it is now expected that the vaccines are on the way. These weeks, the whole market may focus on those big figures which can indicate the economic recovery progress in Q3.
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