Macro Afternoon

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by Chris Becker

Can’t keep Japanese stocks down as they continue ever higher into the clouds as Yen goes nowhere while the rest of Asia did not react negatively to last nights poor showing on Wall Street.

In mainland China the Shanghai Composite has again gone nowhere, only up 2 points or barely 0.1% higher at 3382, still not able to get through key resistance level above at 3400 points. The Hong Kong based Hang Seng Index was off again, down another 0.4% to be at 28178 points as it heads back to the medium term uptrend:

S&P futures are off slightly after last nights slump as the earnings onslaught gains momentum (look here)

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Japanese stocks had yet another very positive session, with the Nikkei closing up 0.5% to be at 21805 points. This extends the overbought levels to true blowoff territory but is not being followed by the USDJPY pair which has remained steady to be around 113.35, still well above key resistance but still not above the July high:

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The ASX200 put in another scratch session, finishing 3 points higher to be just below 5900 points. Last week’s breakout is not yet following through as traders weigh up tomorrow’s CPI print before the next leg up to 6000.

The Aussie dollar is also steady, probably for the same reason, remaining just above the 78 handle against the USD as Asian focus goes to the Kiwi as the new Labor government churns the waters. I’m watching the 78 handle tonight for a potential breakdown positioning before the CPI print:

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The data calendar focuses on preliminary services and manufacturing PMIs tonight from both sides of the Atlantic, plus for Euro watchers, the latest ECB bank lending survey.