by Chris Becker
A frenzy to buy anything not nailed down following the US election last night saw risk markets across Asia lift in spectacular fashion today, with bonds markets still reeling as the punchbowl is drained.
The Shanghai Composite was the more modest of the bunch, up 1.25% currently to 3167 points, as it continues to push above overhead resistance for a proper breakout. A good close here for the week is a strong signal of a new bear market rally. The Hang Seng is up 2% as it claws back from yesterdays losses, but still below key support at 23000, currently at 22880 points.
In Japan, the huuge (yes, I’m going to use that word a lot for the next four years!) drop in Yen against USD has seen the Nikkei bounce strongly after yesterday’s falls, up nearly 7% to 17368 points. The USDJPY pair is basically treading water after yesterday’s epic rally, holding around the 105.50 level after making a new high:
S&P Futures are slowly building again after last nights rally, with Eurostoxx and FTSE futures also up slightly:
Gold is sitting still for now, with no signs of a breakout here at $1283USD per ounce, with the chart looking like Trump tower:
For the ASX200, it was a great bounce back day as well, up 3.3% to 5323 points following through on overnight SPI futures action, but from here the overhead target at 5400 is not to far away.
The Aussie dollar hourly chart is resembling a symmetrical triangle with a point of control at the 76.60 level where not many offers are being made, keeping the Pacific Peso steady going into the Frankfurt open. I’m watching the high moving average and the upside of that triangle for signs of a breakout:
The data calendar tonight quietens down with weekly jobless claims figures from the US, and a few speeches from Fed and ECB wonks to liven up things.