by Chris Becker
A generally positive session in Asia today in preparation for the Trump-Xi meeting as Chinese bourses reopened, with commodities kicking higher in response. Currencies were virtually unchanged alongside gold while oil is gaining in strength on both markers.
Chinese stocks reopened with the Shanghai Composite closing up 1.5% to 3270 points as it tries to regain momentum following a stalled and tepid daily uptrend. The Hong Kong based Hang Seng was less bullish, putting in a mild scratch session as it approaches the former daily low:
Japanese stocks lifted slightly as the Yen remained relatively stable against USD. The Nikkei closed up 0.3% or 50 points to just over 18860 trying to cling onto its key support level on the daily chart. The USDJPY pair is stuck at the 110.60 level with momentum remaining negative on the hourly chart. I’m watching ATR resistance on the upside at the 111 handle but its a low risk/reward proposition right now before the FOMC minutes:
S&P futures are off slightly in anticipation of the Trump/Xi meeting. I’m still watching the 2368 resistance level closely here on the upside for signs of life:
The ASX200 had a small rally today as commodity prices lifted off sending the big guns up, closing up 0.2% to 5871 points. The iron ore triumvarate stood out with BHP lifting 3.5%, RIO up 3% and Fortescue up over 4% as the banks retreated slightly.
The Aussie dollar has made good on this small uptrend from last nights lows, with a recent breakout before the London open up to but not above the 76 handle against USD. I think this will be shortlived with resistance very close above here:
The data calendar continues tonight with a double whammy in the US. First its the March ISM services print, then its the release of the FOMC meeting minutes. After that, probably embarassment to ensue as Trump meets Xi at Maralogo and then another speech by Super Mario in Frankfurt.