ZFX: Ranging market pattern maintains due to the “choppy” sentiment

On Tuesday, stock markets in Asia Pacific Region generally edged higher as the housing data in the US announced last night boosted new optimism. Even though the second wave of pandemic sparked bearish sentiment, investors once again betted on the “quick” economic recovery. The three major Wall Street indexes all rose more than 1%, of which the Dow jumped 580 points, up more than 2.3%.

The pending home sales in May unexpectedly surged 44.3% monthly, boosting the market sentiment.

ZFX analyst Jacob Leung said that the main point is, investors may not have standpoints now, causing a “big” ranging market. If there is no clear direction, the market just moves in response to the sensitive sentiment.

In European session, markets are likely to be positive, following the trend of the Asian session. The “safe-haven” dollar is steady, showing no sign of risk-off mode.

ZFX analyst Jacob Leung said that, it is quite skeptical about the hopes of the recovery, described as V-shaped. The recent move showed that the new coronavirus pandemic can easily dominate the market trend again, from bullish to bearish.

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