Overseas markets started the week mixed again, as the Atlantic split continues. In Europe, tensions were on Hungary and Italian debt, whilst the Germans paid their government to park their short term money (6 month bills were sold with negative yield). In the USA, very good consumer credit numbers gave the local bourses a bid up, but commodities and other undollar assets were flat, with Treasury bonds flat.
The UK FTSE fell 37 points or 0.6% to finish at 5612 points, whilst the German DAX fell 0.67% to finish at 6017 points, with both bourses encountering strong resistance:
The Euro (EUR/USD) saw some light bidding, rising back above the 1.27 against the USD. It is currently trading at 1.2766, as the USD Index still remains above the 81 point level, now trading at 81.31 a
US equity markets were bid up – ever so slightly – with the S&P500 up 2 points to 1280, the tech heavy NASDAQ finishing up, just, by 2 points to 2676 and the Dow Jones gaining 32 points to 12392.
As with most major markets, the S&P500 is encountering strong overhead resistance, as traders and institutions are unwilling, as yet, to bid the market up any further:
The AUD continues to dice with the 1.02 level against the USD currently at 1.0239, while it remains just over 80 cents against the Euro, gaining slightly.
To commodities, and WTI crude, even in the face of a possible blockade action in the Straits of Hormuz and “explosive good news” on credit consumption, was down slightly to $101.38 USD a barrel, with Brent crude now falling alongside, down 66c to $112.40 USD per barrel.
Again, here is another “undollar” asset encountering strong resistance, as seen in the daily WTI crude chart below, which has a possible bullish inverse head and shoulders pattern forming:
Gold saw bids up to $1620 but, and I’m repeating myself here, encountered strong resistance at its long term moving average again, falling $6 to be at $1610USD per ounce before the start of the Asian session.
Other commodities were mixed, with aluminium surprising again, up another 1.45%, copper down nearly 1%, whilst nickel was bid up nearly 2%, rallying from a possibly oversold bottom.
The Aussie SPI Futures point to a slightly higher open for the S&P/ASX200 index, currently up approx. 10 points, probably opening around the 4120 points level.
Trading Day will cover the Asian market session and the “ASX8” stocks after the close in the afternoon.