Market Brief: Stock Markets Mixed, ASX 200 Higher on Stronger C.P.I.


Asian markets finished mixed for one more day as indices trading to one-month highs after the March sell-off. Stocks and other risky assets took advantage of the emergency fiscal and monetary measures implemented by many governments and central banks. The easing in coronavirus lockdown in some states in U.S.A. and Europe also helps investors sentiment ahead of the quarterly corporate earnings reports.
Investors will focus on the Federal Reserve policy meeting with the expectations to keep the interest rates unchanged. Fed will reiterate its commitment to use all the tools available to support the coronavirus battered economy.

In our trading calendar, we have the U.S. first-quarter G.D.P. and the European inflation figures.

Nikkei 225 finished 0.06% lower at 19,771. The Singapore Straits Times is 0.12% higher at 2,565. The Shanghai Composite is 0.35% higher at 2,819, while the Hang Seng Index is 0.08% higher at 24,595. The Aussie ASX 200 index ended flat for the second day at 5,217.

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ASX 200 Higher On Stronger CPI Data

ASX 200 finished 1.51% higher at 5,393 as the index gains momentum after the correction from monthly highs. The Aussie Consumer Price Index rose by 0.3% in the first quarter of 2020 above the expectations of 0.2%. Higher CPI accounted for the impact of the bushfires on food prices and some early effects od the coronavirus outbreak. 

From the technical perspective, first resistance stands at 5,393 the daily high. More offers might emerge at 5,500 the high from April 20 trading session. On a continuation to the upside, buyers will be looking for an extension to the 50-day moving average at 5,646. 

On the flip side, first support for ASX 200 stands at 5,312 the daily low. If the selling pressure persists, the next support is at 5,215 the low from April 27. Next critical level to watch will be at 5,111 the low from April 22.  

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