by Chris Becker
The dumping of the Paris accord by the US has not led to any fallout on risk markets, although clean energy and other related stocks may face a selloff tonight when US markets open. Asia was bullish almost all the way with the Nikkei cracking through 20,000 and the MSCI Asia index to a two year high! Screw the environment! Buy shares!
In mainland China the Shanghai Composite is up nearly 0.2% going into the close at 3107 points, still right on key support and pushing aside – for now – potential breakouts above that level. The Hong Kong based Hang Seng Index is up nearly 0.4% to be at 25902 points as it zooms higher in its reflation trade. The next target here is the 2015 high at 28000!
Japanese stocks had a fantastic day too as the Yen weakened significantly, the Nikkei 225 jumping over 1.6% to be above 20,000 points finally and setting course for brand new highs.. The USDJPY pair broke out above rolling ATR resistance and is at 111.60 going into the London open as everyone goes long USD:
S&P futures are up slightly and treading water after last nights big surge, ready to digest the NFP coming on tonight – again, watch tech/energy/future stocks carefully for a deplorable selloff:
The ASX200 put in a solid finish to end the week, up 0.9% on the day to 5788 points, just below resistance at the 5800 level. Commodity stocks were the biggest movers, although interestingly, oil stocks sold off slightly.
The Aussie dollar is again moving out of step with the other majors, this time firming against a rallying USD, but only briefly as I contend its going lower – way lower from here. Watch the high moving average at the 74 handle just in case though:
The data calendar tonight will look past the Paris dump (aka pissing on your grandchildren and calling it a little rain) and focus solely on the non-farm payrolls print for May.
I’ll be back on Tuesday, going to escape to the woods for a couple days over the weekend and get away from this madness…I might even hug a tree!