Dubai: A Group of 20 (G20) pledge to keep pushing stimulus packages aimed at driving growth helped pushed Asian markets to a 9-month high, while US stocks fluxated just below their all-time high.
The S&P 500 fell 0.37 per cent lower to be at 2,166.93, after hitting a record of 2,175.63 in the previous session. The Dow Jones Industrial Average fell 0.46 per cent to trade at 18,483.68.
“The rally in US stocks is not reflected in the broader markets. In fact only three stocks have participated in this rally,” Naeem Aslam, chief market analyst with Think Forex told Gulf News from New York.
Analysts said that this rally may not sustain going forward. “Investors are underestimating the risk of Brexit, so we do not anticipate the rally would continue in the short-term,” Aslam said.
Traders were also preparing themselves for the US Fed meeting on Tuesday and Wednesday, and also the Bank of Japan meeting on Friday. They would also be looking for UK GDP, US GDP data, and Italian bank test results due later in the week. Any negative surprise from the BoJ could result in a sell-off in equities, Aslam said.
Earlier in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 per cent, sitting just 0.3 per cent below a nine-month peak hit on Thursday on anticipation of more growth boosting measures from Group of 20 countries. G20 finance ministers said monetary policy alone cannot lead to balanced growth and “fiscal strategies are equally important to support our common growth objectives.”
In commodities, West Texas Intermediate crude slipped 2.1 per cent to $43.28 a barrel after sliding 1.3 per cent on Friday to its lowest settlement since May 9. Brent crude was also down 1.62 per cent at $44.95 per barrel.
