The early falls across Asian markets echoed the US session with all major US equity markets ending the session in red. Investor’s optimism was dampened by the disappointing US ISM manufacturing data, hitting three-year lows alongside the ISM employment missing expectations at 48.2 versus 52.1, below 50 for the first time since September 2009.
Notably, the Australian ASX 200 is currently trading in negative territory, lower by 0.27% on the day with choppy trading in AUD/USD during today’s morning session. These market movements come prior to the forthcoming RBA’s rate decision where a 25bps rate cut is highly anticipated by markets. Therefore, volatility in Australian asset classes in the second half of today’s session is to be expected.
Elsewhere the Shanghai Composite is still trading firmly below the key psychological 2,000 level, the Comp has been in a downward trend since breaking this level on the 27th November. The key level of 1950 is now in view and the Comp will be closely eyed for action around this level. It is worth mentioning that even after the positive PMI data yesterday, the Shanghai market failed to hold on gains.
Looking ahead, the Reserve Bank of Australia’s interest rate decision will due at 0330GMT/2130CST with the data expected to be cut by 25bps from the previous 3.25% to a historical low of 3%. Also, we will keep an eye on the Japanese 10-year bond auction due at 0345GMT/2145CST.
As of 0300GMT:
ASX200 (-0.26%), Nikkei 225 (-0.40%), Shanghai Comp. (-0.24%), Hang Seng (-0.5%), KOSPI (-0.53%)
04 Dec 2012 - 14:03 - Fixed Income Data - Source: RANsquawk
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