by Chris Becker
Reagan Tax Cuts 2.0 look likely as the Senate pushes through Trump’s fiscal budget, pushing the USD higher against the majors which has helped Japanese stocks as the Yen retreats before the weekend election. Stocks outside China have basically put in scratch sessions, taking risk off the table for the moment.
In mainland China the Shanghai Composite closed 0.25% higher to close at 3378 points, still not quite through that key resistance level above at 3400 points. The Hong Kong based Hang Seng Index has come back strongly after yesterdays selloff, up 1% to be at 28455 points:
S&P futures are climbing in anticipation to the positive sentiment around Trump’s tax cuts:
Japanese stocks are pausing here even with a weaker Yen with the Nikkei closing steady at 21457 but still way above overbought levels. USD has surged against Yen with the USDJPY pair up through the 113 handle, almost matching the previous two weekly highs but not yet above the longer term downtrend line:
The ASX200 is up 0.2% to close the week out above 5900 points at 5907 and staying well above the 200 day moving average. From here its a clean run to 6000 that will keep all the bulls happy!
The Aussie dollar has fallen back against the USD here, right on the mid 78.50 level going into the City open, staying around the low moving average on the four hourly charts For it to regain its strength, it needs a solid move above the 78.60 or so region:
The data calendar finishes the week with a curious mix of releases and speeches. In the UK we get government finance figures, followed by Canadian CPI, then later its US home sales and an oil rig count.