Asian Stocks Pull Back as Wall St Stumbles, Trump’s Speech in Focus

Wall Street turned in a negative session on Monday which created an immediate knock-on effect throughout global exchanges. 

Steep Selling on Asian Equity Markets, Wall Street Opens Week with Loses

Wall Street opened the week with losses and the pressure on U.S equities has an immediate effect on European equities, which closed with selling prevalent. The Nikkei Index has been negative this morning and cautious trading has dominated other Asian equity exchanges with steep losses. U.S investors will certainly be watched today. The ability of the major Indexes in the States to produce gains has been well documented the past few months, and they have not experienced a sustained selloff for a long time.

Brexit Direction Causing Infighting, Trump’s State of the Union Speech

Political winds will be monitored by investors today. Prime Minister Theresa May in the U.K is facing another wave of infighting within her Tory government as party members argue about the direction of the Brexit. The reports from the U.K likely influenced the Pound’s decline yesterday. And from the U.S, President Donald Trump will deliver the State of the Union address late tonight. The speech will come after Wall Street is closed but may impact early trading in Asia on Wednesday.

Gold Remains under Short-Term Pressure, Cashing Out Profits Likely

Gold has experienced selling the past few days as traders have possibly been cashing out winning positions. The precious metal is near 1336.00 U.S Dollars an ounce. Gold is also likely reacting to the stronger U.S Dollar in the short term. However, Gold remains well positioned and within the higher realms of its mid-term range.

Growth Numbers from European Union Today, U.S Consumer Survey Coming

Traders will pay particular attention to the European Union’s Gross Domestic Product data which will be released at 10:00 GMT.

• 9:30 AM GMT, U.K, Net Lending to Individuals
• 10:00 AM GMT, E.U, Preliminary Flash Gross Domestic Product
• 15:00 PM GMT, U.S, CB Consumer Confidence

Yaron Mazor is a senior analyst at SuperTraderTV.

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