ZFX: The markets mixed amid no dominated theme

The Wall Street overnight was bullish together with the bouncing dollar. S&P 500 and Nasdaq hit record highs again, and the DOW reached 29000 level, the highest since the late February.

However, stocks in Asian trading session were just mixed on Thursday as investors react differently to the latest economic data.

The US stocks even closed higher after the disappointing ADP figures, showing that the private payrolls only increased by 428000 in August, far below expectation of over 900000, triggering concerns over the US labor market.

ZFX analyst Jacob Leung said that, the lower US Treasury yields are obviously not caused by safe-haven demand. Also, we can see the market move this week was not directly related to the economic data performance. It should be alerted that, if investors believe the Fed will implement more stimulus policies, the greenback should logically be under pressure. On the other hand, gold price and oil price did not move fully in line with the fundamentals.

Investors are also closely monitoring the renegotiation of the new economic stimulus package between the White House and the Congress. However, based on the current information, it is not that optimistic. Even though the US Treasury Secretary Mnuchin said the Trump’s administration is willing to negotiate with the Democratic Party unconditionally, the US House Speaker Nancy Pelosi said on Tuesday that “serious differences” remained after a phone call with Mnuchin.

It is expected that no deal will be made in the short term, however, the whole investment sentiment continued to be positive, supporting the Wall Street’s breakthrough.