by Chris Becker
Asian shares are trying to eke out gains after a lacklustre lead on overnight stocks, buoyed by a weaker Yen and higher commodity prices.
The Shanghai Composite is the only negative nelly, down more than half a percent to 3144 points as the PBOC keeps the onshore Yuan relatively unchanged in today’s fix. The bounce in mainland shares remains intact for now. The ang Seng is doing better, up 0.6% and building strongly above former ATR resistance on the daily chart, with momentum building as it tries to get back to the December highs:
Stocks are positive in Japan as well with the Nikkei taking back most of yesterday’s losses, back to 19353 points, still off my target of 20,000 but getting there. The USDJPY is the culprit as the Yen sold off on some BOJ comments, currently bid up to the 116 handle. The area to watch to tonight is rolling ATR resistance at 116.40 or so:
S&P Futures are very flighty indeed, absorbing the fake President, I mean news, and bottoming at yesterday’s lows at 2260 points into the London open:
The ASX200 is barely treading water, up about 0.2% to 5760 points, with commodity stocks mixed and banks dragging everything down going into the close.
The Aussie dollar however is trying to breakout once more, continuing its drive to get to 75 cents against USD, just below the 74 handle and what looks like a triple top on the hourly chart. I’m watching the 74 handle for a follow through here:
The data calendar tonight is relatively quiet with a slew of UK based domestic releases, culminating in Mark Carney testifying, while its weekly DOE inventories in the States.