Welcome to Extreme Investor Network! Today, we are diving into the latest developments in the stock market and what to expect in the upcoming Asian trading session on Monday, May 20th.
Despite softer inflation figures for April, the US labor market continues to show strength, leading to wage growth and increased consumer spending. Last week, the US equity markets reacted to speeches by FOMC members, resulting in a slight slip in the Nasdaq Composite Index, while the Dow and S&P 500 saw gains.
Looking ahead, the Asian Economic Calendar will be dominated by the People’s Bank of China (PBoC) on Monday. The PBoC is expected to make a decision on the loan prime rates, with economists predicting no change to the 1-year and 5-year rates. Any surprises from the PBoC could impact buyer demand for stocks listed on the ASX 200 and Hang Seng Index.
In addition, economic indicators from Japan will also be in focus during the Asian session. Investors will be keeping an eye on the Tertiary Industry Index figures for March, with expectations for a modest increase. Any weaker-than-expected numbers could paint a less optimistic picture of the Japanese economy.
Furthermore, investors should pay attention to comments from the Bank of Japan regarding the economy, inflation, and interest rates. Any dovish signals could influence buyer demand for the Japanese Yen, potentially boosting appetite for Nikkei Index-listed export stocks.
Stay tuned to Extreme Investor Network for more insights into the stock market, trading strategies, and updates on the latest market trends. Trust us to provide you with valuable information to make informed investment decisions. Happy trading!