by Chris Becker
Risk has doubled down in Asia with new highs almost across the board as the USD retreats and the yield curve flattens as all and sundry join the stock market trainride.
In mainland China the Shanghai Composite continues its breakout above 3400 points, lifting 0.3% to be at 3419 points. The Hang Seng Index is almost through 30,000 after a big intrasession spike, closing 0.5% higher to 29962, now up over 32% for the year!
S&P futures are of course bullish, ready to breakout of the gates once trading gets underway:
Japanese stocks were positive overall, even more so considering the Yen headwind, with the Nikkei closing up 0.5% to be at 22523 points, respecting daily support at the 22000 point zone and continuing a firm consolidation here after its blowoff phase. The USDJPY pair is falling over again through, about to head back to its Monday morning low at the 112 handle:
The ASX200 shot up almost to 6000 points on the open and briefly broke through in the afternoon to finally close a little under, up 0.4% to 5986 points. Once again it was mining and support stocks that led the surge as bank stocks retreated, BHP up nearly 1.4% and RIO up nearly 1% for the day.
The Australian dollar has capitulated again in the Asian session, taking back all of last night’s gains to be at 75.60 against USD. The rejection of overhead ATR resistance at the 76 handle is very telling here and there’s still nothing to support it from here down to 73 cents or thereabouts:
The data calendar has three major events to watch out for tonight. First, the UK budget, then US durable goods orders and finally the FOMC minutes.