Less enthusiasm in equities may spark risk-off, short USD/JPY?
Chinese regulators surprised the market yesterday. An order was issued to domestic lenders to check the “systemic risk” on local listed conglomerates engaged in overseas buying sprees. Sparking off potential risk averse sentiment.
- Stocks performance in Asia was generally soft in early morning.
- Inflows into equity funds failed to break the $1bn mark this week, according to EPFR Global, after taking in a 31-week high of $24.5bn in the second week of June.
- US energy stocks are on track to post the worst first half of a year since 1990. Mounting concerns about increasing oil supply sends crude tumbling.
- USD/JPY may head towards 110.25 if risk averse sentiment escalates.
Fullerton Markets Research Team
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