CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.

Equities rise on trade optimism, mixed data from Asia

07:01 30 August 2019

Summary:

  • Equities have rebounded noticeably on the back of trade optimism
  • China said it wanted to focus on removing new tariffs in order to prevent a further escalation of the trade battle
  • A mixed set of data from Japan, better industrial output from South Korea

Renewed optimism

Thursday turned out to be a remarkably good day for US investors as major indices closed higher on the back of renewing optimism with regard to the US-China trade war. Upbeat sentiment has also been seen across Asian markets where the Korean KOSPI is leading the gains (+1.8% at the time of writing), while other major indices are also adding more than 1%, except the Shanghai Composite being up just 0.3%. Where did optimism come from? On Thursday, China said that it would not retaliate immediately against the latest US tariff increase and it wanted to focus on removing new tariffs so as to prevent a further escalation of the trade spat. In addition to that, several hours later Donald Trump informed that the US and China were scheduled to have a conversation about trade, however, we have yet to get any information from these talks. Let us notice that US GDP for the second quarter grew less than expected, according to the data released yesterday, which could be also a factor prompting Donald Trump to reconsider his trade strategy (put it simply, he could realize that any trade restrictions are harmful not only to China but for the US as well.

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app

The US30 is looking to break above its latest consolidation. Should it happen, the US index might take a stab at heading toward 27300 points. Source: xStation5

Avalanche of data

Looking at the Asian macroeconomic calendar we may notice a lot of prints released overnight. First of all, let’s begin with Japan from where we got many ambiguous numbers. First, industrial production rose 1.3% MoM in July, above the consensus pointing to a 0.3% MoM increase, while retail sales (for the same month) decelerated 2.3% MoM, that was worse than the consensus had indicated at. Second, inflation in Tokyo for August slowed to 0.6% YoY from 0.9% YoY, matching the median Bloomberg estimate, while core price growth also did decelerate irrespective of what a gauge we look at (either ex-fresh food or ex-fresh food and energy). Third, the data from the labour market showed the jobless rate decreasing to 2.2% from 2.3% (the consensus had not assumed any decline), while the job-to-applicant ratio fell to 1.59 from 1.61, missing the median estimate assuming no change. Looking beyond Japan, it is worth mentioning a solid 2.6% MoM increase in South Korean industrial production, well above the consensus suggesting a 0.5% MoM jump. Taking into account that some macroeconomic releases from South Korea tend to lead those from other economies, it could be considered as a somewhat reassuring sign for investors. This solid release is also helping the KOSPI rise today. Last but not least, building permits for July from New Zealand fell 1.3% MoM, while permits from Australia (also for July) plunged as much as 9.7% MoM. However, keep in mind that these are very volatile series, hence looking at a single reading, in attempting to draw constructive conclusions, seems to be pointless.

The USDJPY is hovering right below its important technical resistance. Source: xStation5

In the other news:

  • S&P cut Argentina to SD from B- after the country said it would delay payments on $101 billion of debt; the new rating means that the country should be able to make other payments in a timely manner

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back
Xtb logo

Join over 1 Million investors from around the world

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 11 October 2024
adobe_unique_id cc 10 October 2025
test_cookie cc 1 March 2024
SESSID cc 9 September 2022
__hssc cc 10 October 2024
__cf_bm cc 10 October 2024
intercom-id-iojaybix cc 7 July 2025
intercom-session-iojaybix cc 17 October 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-22576382-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_ga_CBPL72L2EC cc 10 October 2026
_ga cc 10 October 2026
AnalyticsSyncHistory cc 8 October 2022
af_id cc 31 March 2025
afUserId cc 1 March 2026
af_id cc 1 March 2026
AF_SYNC cc 8 March 2024
__hstc cc 8 April 2025
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 4 November 2025
_omappvp cc 22 September 2035
_omappvs cc 10 October 2024
_uetsid cc 11 October 2024
_uetvid cc 4 November 2025
_fbp cc 8 January 2025
fr cc 7 December 2022
muc_ads cc 10 October 2026
lang
_ttp cc 4 November 2025
_tt_enable_cookie cc 4 November 2025
_ttp cc 4 November 2025
hubspotutk cc 8 April 2025
YSC
VISITOR_INFO1_LIVE cc 8 April 2025

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
personalization_id cc 10 October 2026
UserMatchHistory cc 8 October 2022
bcookie cc 10 October 2025
lidc cc 11 October 2024
lang
bscookie cc 8 September 2023
li_gc cc 8 April 2025

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language