US markets rose overnight after a worst-than-expected new home sales became a sign that the Fed will lower rates this week. Sales of new homes in December fell 4.7% and the 2007 new home sales plunged by a record 26.4% compared to 2006. This data has sparked the speculation that the Fed will make another wide cut after their meeting on Wednesday. Dow rose 176.72 pts or 1.45% to 12383.89, S&P500 advanced 23.36 pts or 1.76% to 1353.97 and Nasdaq rose 23.71 pts or 1.02% to 2349.91. Trading are still expected to be volatile with uncertainties still looming on investors, perhaps at least until Wednesday when Fed's decision is certain, which will make the market either rally or plunge and the bear may prevail.
Asian markets may open higher and make a rebound from yesterday's sharp losses today following the rate cut speculation to be made by the Fed after a bad new home sales data overnight. Commodities prices and precious metals prices also rose following the rally; Crude oil traded at $91ish per barrel, gold priced around $927.50ish and JPY traded around 107ish. Nikkei futures settled at 13365 in CME, higher than the close here of 13140 and 13180 yesterday.
The Kospi may open higher today and may open around 211ish following the US markets rally overnight. Should the investors want to bet more on the stock markets, it may try to go up to 217ish today. Volatility may still be high with a lot of uncertainties and also earnings report may take charge locally.
Hangseng may open higher and may rebound from another sharp loss yesterday after US investors are looking forward to another rate cut by the Fed. Hangseng may open around 24700ish and may go up to more than 25000 again today in a very very volatile market in the region.
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