Light trading volumes in Asia due to Chinese New Year celebrations

Chinese New Year celebrations will see the closure of many Asian markets today. The Chinese market will be closed throughout the week, Hong Kong and Singapore will only partially trade from mid week so volumes are expected to remain light.

Australian markets will trade normally with the exception of Thursday which marks the Australia Day holiday. All eyes will therefore be on Wednesday’s inflation report in Australia and Friday’s reading into US GDP – perhaps the most important data set for traders so far in 2012.

The Australian dollar has posted some solid gains in early morning market trading, last trading just shy of 1.05 against the US dollar. The Euro weakened slightly, last at 1.2885 against the US dollar. Commodities were slightly lower with copper down around 1.5% to US$3.74 after a solid run over the past month.

On Friday in the US, the S&P500 continued its winning streak with technology and energy companies up more than 2.7%. The overall increase on the S&P500 index was flat. The Dow Jones Industrial average was 0.8% higher, led by Bank of America.

Quarterly reporting season has so far been solid, with the exception of Google missing estimates on Thursday last week. Its shares slumped more than 6% in response to the earnings print.

Elsewhere, around 65% of the 50 or so S&P500 companies which have so far reported earnings have come in above expectations.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.