How to Prepare for Trading This Week

After U.S. markets boosted, Asia Pacific stocks were neutral on Friday morning. Chinese stocks were also stalled by a decrease in Hong Kong and a shaky performance in China.

By 10:58 PM ET, the Nikkei 225 index of Japan was up 0.53 percent (2:58 AM GMT). The KOSPI in South Korea increased by 0.68 percent. The ASX 200 in Australia increased by 0.91 percent. The Hang Seng Index in Hong Kong fell by 1.41 percent.

Shenzhen Component was down 0.59 percent, while the Shanghai Composite in China fell 0.57 percent. U.S. stocks rose on Friday because of strong earnings reports from Apple Inc. (NASDAQ: AAPL) and Amazon.com Inc. (NASDAQ: AMZN), as well as hopes that the U.S. Federal Reserve may ease monetary tightening.

As a result, the Nasdaq 100 rose 0.92 percent. The 10-year yield is almost at its lowest point since April thanks to a surge in Treasuries. As anticipated by the markets, the U.S. Federal Reserve increased interest rates by 75 basis points to 2.25–2.5 percent on Wednesday.

Experts Analyze the Market

According to Thomas Taw, head of APAC iShares Investment Strategy at BlackRock Inc (NYSE: BLK), the Fed will flip policy at some point and that should be helpful for risk markets, but in the meanwhile, they’re so set on quelling inflation that we prefer not to purchase the drop here. TD Securities analysts Priya Misra and Gennadiy Goldberg said in a note that as long as inflation stays too high despite a solid labor market and pay trends, market pricing is excessive, and the terminal rate should go closer to 3.5 percent to 3.75 percent.

On the statistics front, the second quarter’s U.S. Gross Domestic Product (GDP) decline was 0.9 percent annually, according to figures released on Thursday. In a separate development, US President Joe Biden and Chinese President Xi Jinping want to meet in person. This will be the first face-to-face encounter between the two leaders since Biden took office.