Things are not getting better yet. Of course, it is still early May not even the second week. iShares MSCI Emerging Index ETF (EEM) closed the session this morning down -1,65%. South Korea ETF (EWY) now took the blow most by retreating -2,01% following Thailand ETF collapse of -4% on Tuesday.
In US market, investors are watching closely job reports to further verify the weakening GDP. Job reports are playing a pivotal role this week to set the tone toward "Selling in May and Go Away" sentiment which has seemingly started to spread out among investors. Last night ADP Employment Change report for April.came with a disappointing result The Change report suggested that last month's private payrolls increased by 179,000, which is less than the 200,000 private payrolls that had been expected, on average. Market will continue to jitter on the waiting of this Friday big job reports. Meanwhile, in Indonesia market seems to give a late surprise yesterday by bringing back the IDX to the green zone even though it was just meaningless fractionally up amid a strong turnover. We suspect that the last minutes upsurge was driven by short covering instead of the returning of risk appetite. Along with this line, it is interesting to note that apart from the fantastic one day increase of BNBR for +11,94% after mid-term sideways, the same path was not followed by its London-listed subs, Vallar, which just booked a mediocre increase of +0,74%. We are not convinced by yesterday last minutes rebound as we believe that was merely part of the day short covering as the proportion of foreign net purchase was just 14% of the total foreign transaction values. And, we suspect that local market may just play "save the worst for the last" day of the week tomorrow, the cashing-in Friday. '+'
