by Chris Becker
Logic? Rationally thinking? These things don’t go along with stock trading! Chinese financial shares are up sharply, lifting the rest of Asia as the USD retreated while oil gained in anticipation of extended supply cuts at tonights OPEC meeting.
In China the Shanghai Composite has closed up nearly 1.5% higher to be above critical support at 3100 points. The ebullience extended to Hong Kong with the Hang Seng Index up nearly 1% done the same, but after yesterdays session still hovering near its recent high just over 25000 points:
Japanese stocks moved a little higher supported by a slightly weaker Yen, with the Nikkei closing up 0.3% higher, but still just below resistance at 20,000 points. The USDJPY pair recovered from last nights selloff but aonly just, settling here at the 111.70 level and slowly building up momentum to have another crack at rolling ATR resistance:
S&P futures are only slightly off after the record high made last night as traders position before the OPEC meeting tonight that could shake up the energy sector, let alone the deplorable Budget that Trump’s administration just handed down:
The ASX200 had a solid session too, closing up 0.4% higher to 5789 points with materials stocks leading the charge, including iron ore but gold and oil producers in the main. This takes the bourse to just below local resistance at 5800 points where it is poised for another attempt back up to 6000 on a broader risk on move.
The Aussie dollar retreated though, now twice failing to make price stick above the 75 handle against USD. We could see a retracement down to ATR support/trendline at 74.50:
The data calendar tonight will focus mainly on the OPEC meeting but also Q1 GDP for the UK and the US advanced trade goods balance.