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© Reuters. A man looks in front of an electronic board showing stock market information in a brokerage house in Nanjing
By Swati Pandey
SYDNEY (Reuters) – Asian markets scored on Thursday with two major centers, Japan and China, closed for the holidays as the dollar maintained its gains overnight, after the US central bank tipped the forecast lower rates.
Australian stocks fell 0.7%, New Zealand 1.2% and the Korean index 0.4%.
The future E-Mini's were unchanged. At the beginning of European transactions, the pan-region was down 0.23% to 3 444, German was 0.18% to 12 329, while futures dropped by 0.36% to 7 305 5.
Trade in Japan will resume next Tuesday while China will return Monday.
Global equity markets have reached new highs since the start of the year largely based on the expectations of soft monetary policies around the world, while the positive tone of the US-China trade negotiations has also helped to mitigate the feeling.
But analysts are now wondering if this solid period can continue.
"In May, the search for the next catalyst becomes an obvious condition for answering the traditional question: is it time to sell and leave?" said Claudio Irigoyen, an economist at Bank of America-Merrill Lynch.
Irigoyen was referring to a well-known adage, "sell in May and leave," which advises investors to dispose of their holdings in May, before the summer break in the northern hemisphere, and switch to fixed-income securities. to maximize returns.
"We remain confident that the recovery in China will result in a recovery of the emerging markets and emerging markets complex in Europe, and the worst case scenario will be avoided with regard to Brexit and that recent progress will be achieved through the conclusion of the Brexit. a US-China deal in the 2nd quarter, "Irigoyen added.
"It follows that the overall environment is therefore still favorable to emerging markets, less because of inexpensive valuations, but still a sufficiently attractive and risk-adjusted carry."
Investors are watching the first quarter results closely to find clues to the health of the US corporate sector.
According to Refinitiv data, earnings of the S & P 500 index are expected to grow by 0.5% for the quarter, a much better result than at the beginning of April, while profits should decrease by 2% .
In the currency markets, the greenback took a breather after solid gains overnight, after the US Federal Reserve maintained the target range of its key rate unchanged at its May meeting.
Markets had expected the Fed to sign a "preventative cut" to fuel inflation, but "the statement reveals virtually nothing in this regard," said Anna Stupnytska, Fidelity International's global economist in a statement.
The held at 97.62 against a basket of major currencies after reaching 97.728 on Wednesday. It stood at 111.61 yen, after being constantly eased from the four-month high of 112.39 reached last week.
The Fed's mixed messages on monetary policy weighed on the dollar. He lowered his inflation outlook and proceeded to a technical reduction of the excess reserve rates. However, Fed Chairman Jerome Powell said the factors weighing on inflation could be "transitory" and that he did not see the need for a rate move in both meaning.
"When he insisted on the potential for rate cuts, he simply stressed that the Committee was satisfied with the current political stance and did not give much more to the markets on which to hang," M added. Stupnytska.
Early labor market data also boosted dollar hawks, according to a report from the ADP payroll processor (NASDAQ :), which showed that US private employers added 275,000 jobs in April, well above 180,000 estimated.
Nevertheless, reports on construction spending and manufacturing in the United States were weaker than expected, sending mixed signals about the strength of the economy.
In the commodities sector, oil prices fell after data showed that production reached a new record last week, but losses were limited by the intensification of the crisis in Venezuela and the Stop derogations to Iran's oil sanctions by Washington. [O/R]
The US crude lost 27 cents to 63.32 dollars a barrel and slipped 33 cents to 71.86 dollars.
was slightly lower at $ 1,271.55 the ounce.
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