Volatility returned to Asian markets today, the good kind, unless you were Japanese. The Nikkei 225 was up over 1% leading into the Bank of Japan (BOJ) meeting, and the fell flat on the fickle monetary policy measures on offer. As usual “free” markets were expecting more printing of money to embolden the mind…
The local market, the S&P/ASX200 index rose throughout the day and shook off the very important housing finance numbers, up 1.2% to 4247 points. In my weekly “Trading Week” (posted on Saturday mornings after US/Euro session closed) analysis I reiterated that the local bourse needs to snap above the 4300 point resistance level before moving into a new bear market rally or even a cyclical bull market:
It’s looking closer again isn’t it?
As I said at the top of the post, Japan’s Nikkei 225 finished flat up 9 points to 9897 points, the volatile Hang Seng up 1% to 21351 points. The Shanghai Composite is also up 0.9% to 2456 points, still above its breakout from its long term downtrend channel.
The AUD gained back 0.5% to 1.055 against the USD but still looks weak (Disclosure: I’m still short for a short term trade that may become a larger position):
Gold only gained a few bucks in the Asian session, moving to around $1702USD per ounce and slightly down at $1615AUD per ounce. It still looks pretty weak, but support at its 200 day moving average around $1660 likely to bring in the gold bugs, as is the upcoming Federal Reserve meeting tonight.
The Futures
The futures are looking mixed going into the European session, with everyone waiting in anticipation for the US Fed meeting tonight. US and Euro markets are pointing to opening up 0.5% or so, whilst the local market is currently stable on the futures. The only other market-moving data to watch tonight is UK Trade Balance figures and US Retail Sales.
Let’s see what happens in Market Morning tomorrow.
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