by Chris Becker
Chinese GDP surprised on the upside, with mainland stocks rising alongside Japanese bourses even as the USD drops against Yen. Uncertainty about the Orange Oligarch’s climb to power tonight in the US is lifting gold while Australian stocks are selling off as traders position for a wait and see Monday.
The Shanghai Composite is lifting higher on the back of the GDP print, up 0.7% on the other side of the long lunch break and bouncing off key support level at 3100 points to be at 3124 points. The Hang Seng is down 0.6% again, unable to hold onto its recent gains and stalling just below 23000 points which is becoming resistance once more:
Stocks are positive in Japan with the Nikkei up nearly 0.5% and holding on to the 19000 point level as Yen remains relatively weak against USD. As you can see on the four hourly chart below, the trendline from the recent reversal is holding, but only just as some USD sellers stepped in this afternoon to bring the pair back below 115 again. I’m watching the low moving average at 114.25 to hold here:
S&P Futures are still stuck going nowhere as everyone shuffles there feet around not knowing what’s going to happen in the next few hours, days, years….
Even more cautious positioning locally as traders dumped their positions in Aussie stocks with the ASX200 closing down 0.7% to 5654 points with the banks dragging most of the bourse down with them.
The Aussie dollar zoomed higher on the Sydney open after it steadied overnight. Its currently trying to get to the 76 handle against USD as we go into the London open. I’m watching the low moving average at 75.60 to hold here:
The data calendar tonight has only one thing to watch out for – the presidential inauguration. Don’t watch it – go have a drink with your friends or go to bed early, and think about what can be done to avoid this mess again.
Haveagoodweekend.