by Chris Becker
The fallout from a hung UK parliament and the Comey testimony has not translated into big falls or higher volatility in Asia – save the Pound, which is taking a pounding against the majors. Good time for shopping online in the UK?
In mainland China the Shanghai Composite is up slightly going into the close, currently at 3152 points, trying to build on its breakout above key support at the 3100 point level. The Hong Kong based Hang Seng Index however is treading backwards, down 0.4% to be just below 26,000 points. The next target remains the 2015 high at 28000, as this should only be a temporary setback:
Japanese stocks were mixed on a retreating Yen, with the Nikkei 225 lifting slightly to be just below the 20,000 points level while the broader TOPIX stood still. The USDJPY pair is continuing its little bounce and is currently just above the 110 handle, but not ATR resistance or the daily downtrend line. The next level to watch is support at 109.20 for another breakdown:
S&P futures are up slightly as traders don’t seem to care about domestic political imbruglios or indeed Brexit/not-Brexit:
The ASX200 finishes the week with another scratch session, putting on only a few points to be at 5677, hovering just above the 200 day moving average. Non-energy commodity stocks lifted, while oil companies slumped as financials wobbled.
The Aussie dollar is still hovering at its May high above the 75 handle, as traders process the events of the last 24 hours. I’m still watching the low moving average at the 75.20 level as a potential short point here as the series of four hourly highs is lower and lower:
The data calendar finishes the week with a whimper after the big bangs of the last 24 hours with Canadian CPI the only notable print to watch.