Equity futures stormed out of the gate on initial relief that a Syria attack may be avoided, which sent oil and the PM complex flash crashing lower. However, overnight, sentiment shifted that the Syrian escalation is at best delayed and as a result Brent regained all losses, with the precious metals also largely unchanged from Friday's close.
Once again it is all about central banks, with early negative sentiment heading into Asian trading - following the disappointing announcement from the PBOC about "ample liquidity" leading to the 6th consecutive drop in the Shanghai Composite while the PenNikkeiStock index tumbled yet again - completely erased and flipped as Mario Draghi spoke, although not to explain his involvement with the latest European derivative window-dressing scandal, but
To some, today is Martin Luther King day and as a result the US markets are closed, especially since today is also the day when Obama celebrates his second inauguration with Beyonce, Kelly Clarkson and James Taylor at his side (hopefully not on the taxpayers' dime).
Starting with the Asian markets this morning, it appear the roller coaster ride for markets continued overnight. Asian equities started the day trading weaker but shortly after the open though, all of Asia bounced off the lows following the previously noted surge in Chinese A-shares soaring more than 5% in a matter of minutes in what was initially described as a potential “fat finger” incident.
By Equitymaster: Indian equity markets traded firm throughout the trading session today on the back of sustained buying activity across index heavyweights. Although trading was largely rangebound in the morning session, buying pace picked up post noon. The final hours saw the indices inch upwards to close well above the dotted line.
Equitymaster submits: The Indian stock market began the day's proceedings on a strong note before profit booking at higher levels erased some gains. However, the markets managed to trade above the dotted line throughout the trading session, although trading remained range bound from the afternoon session onwards including the final hour. While the BSE-Sensex closed higher by around 52 points (up 0.3%), the NSE-Nifty closed higher by around 23 points (up 0.4%).
Equitymaster submits: After being mired in losses for four consecutive days, Indian stock markets languished in the red in today's trading session as well. Although the morning session saw some attempts being made to push into the positive, these proved futile as the indices closed well into the red in the final trading hour. While the BSE-Sensex closed lower by around 156 points (down 0.8%), the NSE-Nifty closed lower by around 36 points (down 0.6%).