The S&P Global PMI is suggesting that growth picked up in Australia in Q3. The preliminary August co...
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Natural gas fell on Monday with US prices down sharply following Baker Hughes data showing nine extra gas rigs signalling an upcoming increase in output at a time of above average inventories and expected cooler weather. Plentiful supply also pushed European prices lower.
The ESU5 overnight range was 6339.75 - 6374.00, Asia is currently trading around 6350. The September contract surged higher on the US open but some decent selling capped this and it was a pretty weak close for stocks. This morning has seen US futures open slightly higher, ESU5 +0.09%, NQU5 +0.05%. The animal spirits remain strong even though price is looking stretched. While above the 6230/50 area dips will probably continue to be supported, a break below this support is needed to signal a possible correction. As mentioned by Lance Roberts below be on the look out for potential rotation to the broader lagging sectors of the market.
Fig 1: S&P High Beta Crowding
Source: MNI/@LanceRoberts/JP Morgan
Monday saw strong South Korean equity inflows, with $633mn the best daily inflows since the 9th of June. Yesterday the Kospi closed above 3200 and is holding above this level in the first part of dealings today. Renewed interest in Samsung is aiding the better offshore inflow backdrop over recent sessions. Earlier the company noted that pre-orders for its new foldable phone in South Korea have hit a record (via BBG). Yesterday' strong inflows brings the last five trading days of inflows up to just over $1bn.
Table 1: Asian Markets Net Equity Flows
Yesterday | Past 5 Trading Days | 2025 To Date | |
South Korea (USDmn) | 633 | 1003 | -7338 |
Taiwan (USDmn) | 142 | 2520 | 415 |
India (USDmn)* | 91 | -476 | -8804 |
Indonesia (USDmn) | -11 | -42 | -3613 |
Thailand (USDmn) | 36 | 135 | -2188 |
Malaysia (USDmn) | -12 | -61 | -2854 |
Philippines (USDmn) | -1 | -72 | -623 |
Total (USDmn) | 877 | 3006 | -25005 |
* Data Up To July 18 |
Source: Bloomberg Finance L.P./MNI