Asian markets slump ahead of ECB news
During Wednesday’s Asian trading session, most traders kept away from risky deals following a sag in crude prices and commodities.
Meanwhile, the Shanghai Composite Index tumbled 1.7%, being suppressed by losses in basic materials as well as energy shares. As for the Hang Seng Index, it lost 0.6%, affected by weakness in stocks of oil producing countries.
Furthermore, in Asia Korean Kospi stood flat, while Japanese Nikkei Stock Average ended -1.4% and Australian S&P/ASX 200 +0.3%.
Market participants were being extremely careful before the ECB’s monetary policy gathering on Thursday. Financial analysts mainly expect the ECB to ease its policy, although some traders think that the given stimulus expansion could fail to meet their expectations.
Currently we see very cautious trading, because traders are simply locking their positions in those places where they are absolutely ready for tomorrow session. By the way, such trades normally suggest shorting the common currency as well as opening long positions in the Japanese yen and the greenback. .
By the way, Brent oil prices dipped 0.2%, trading at $39.55 a barrel.