by Chris Becker
While North Queensland batters down as Cyclone Debbie crosses the coast, the rest of Asia is feeling much more pacific after a shaky start to the week yesterday.
The Shanghai Composite is down 0.3% after the long lunch break still at 3255 points, still unable to climb significantly above local support at the 3200 level. The Hang Seng Index is doing a lot better, up nearly 0.5% to 24319 points but not yet making a new daily high. Price has dipped and remained below the high moving average so for now the bulls do not yet have the upper hand:
Japanese stocks are doing a lot better as the Yen moderated its gains overnight but remained stable during the Asian session. The Nikkei closed up over 1%, taking back most but not all of yesterday’s losses getting back above 19200 points, proving a false break of a key support level. Yen sold off immediately on the Tokyo open on a momentum trade after the bounce late last night, but has stalled and sits at the 110.60 level at a mid point of control. I’m watching for a potential breakdown below the 110.45 level:
S&P futures are starting to regain here, but need to get past last weeks intrasession highs above 2350 points to gain any traction:
The ASX200 was again one of the better performing bourses, rallying from the open, closing up 1.3% on a double whammy of financials and major miners both moving higher. Megabank was up 2% across all 4 major divisions while BHP and RIO recovered from Monday’s slash and burn.
The Aussie dollar again tried to rally on the Sydney open, but found stiff resistance again today, still staying just above the 76 handle against USD. Rolling resistance above 76.40 is the target to watch overnight:
The data calendar continues with advanced trade goods and consumer confidence prints in the US tonight, but the biggest mover and shaker will be the UK trigger of Article 50, thus starting the Brexit process. Should be priced in but you never know…