Asian stock markets opened weaker, setting up their inter-listed declines on U.S. exchanges. Asian markets are reacting to listless trading action on Monday, where markets fell at the open. By 1 p.m. yesterday, the S&P 500 (SPY) and Nasdaq (QQQ) recovered. The Dow Jones recouped most of its declines, ending the day down by 0.30%.
On Monday, China posted stronger homebuyer sentiment. Although Chinese homebuyers are encouraged by relaxing property restrictions, the rule changes are hardly enough to re-ignite speculative home buying. President XI once said that homes are for living in and not for speculation. This limits the rebound potential in homebuilding activity.
Watch out for metals and mining stocks to trade in a range, in reaction to China’s economic data. Freeport-McMoRan (FCX) could pull back from its high. BHP Group (BHP) and Rio Tinto (RIO) may fall on profit taking. In Brazil markets, expect Vale (VALE) to underperform. Investors are wary about the political uncertainties in the country.
Selling pressure will likely gain momentum today. The energy sector is reacting to OPEC+ production plans. OPEC+ plans to restore some oil production in 2024. Exxon (XOM) risks falling below $110. Shares already rebounded from near $95 at the start of the year to as high as $123.75.
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