By Chris Becker
Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context.
More charter boat shenigans on Asian equity and commodity markets today as the permabulls – except the Aussie “all-bull no-beef” variety (and a turkey or two) – covered their long positions after expecting a short-covering bounce from the Spain bailout news. The ASX200 was the only green market, save India today, rising 9 points or 0.2% today to 4072 points reopening after the long weekend:
We’re still on a knife edge, and the market still requires a catalyst, as the Spain BANK bailout wasn’t enough. I would suggest waiting til around June 17-20 (Greek elections and the FOMC meeting) before a decisive move is made. For now, leave the bottom picking to the monkeys.
The Nikkei 225 fell another 1% down to just over 8500 points, whilst the Hang Seng and Shanghai Comp were both down 0.7% whilst on currency markets, the big mover was the Yen although it has been oscillating in a range for awhile now. The Aussie took back nearly half the losses of last night, and is currently just above 99 cents against the USD. The Euro also gained about 0.5 against the USD and recently just spiked above 1.25:
Gold was volatile again throughout the Asian session and now moving into the London open at $1591USD per ounce, or $1607AUD per ounce I am seeing a series of higher lows on the hourly charts since mid-May, there maybe a retest of a breakout above $1600 soon, but I’m not holding my breath.
Other commodities continue to retrace, with crude falling around 0.5%, with other precious metals also down around the same.
Tonight
The data flow tonight includes GB Industrial production and the secondary retail sales numbers from the US alongside import/export prices and the US Treasury Budget for May. The European bourses are up across the board but only faintly.
Check out our Economic Calendar here for the rest of this week’s data prints.
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