MetaNews reported that shares in Asia were reduced today as many investors are looking to the various entities whose policies dictate much of the fluctuation in the markets. MSCI’s broadest index of Asia-Pacific shares, not including the Japanese index, was 0.11% lower, but of course this is to be expected in the wake of several lockdowns being reinstated across multiple key countries.
Losses were most significant in places like Australia and Asia, of course, with the ASX down 0.76% and the Nikkei falling 0.91%. The South Korean market was 0.39% lower, as well, and again, many lockdown procedures have been taken over the past 24 hours in efforts to reduce the potential spread of the new Delta strain of COVID.
We’ve seen this kind of loss before, and it so happens that many markets, though optimistic in recent months, were prepared to some extent for these kinds of activities, and have taken measures to mitigate the losses.
“Markets are really treading water ahead of the very significant U.S. labor data later in the week,” said Ray Attrill, Head of FX Strategy at National Australia Bank.
At the end of the week, we are expecting an employment report for June will be released, which we are expecting could help us understand, if not turn the Fed’s policies away from the track its been on.
“Inflation is already much higher than the Fed was anticipating, so it is really the pace of improvement in the labour market that stands head and shoulders above every other indicator in terms of when the Fed will feel comfortable signalling the start of tapering,” said Attrill.
Joe Biden, the American President, recently signed a spending deal agreement that we are paying close attention to as well. MetaNews reported that shares in Asia were reduced today.