Macro Afternoon

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Stocks in Asia reacted very positively to the Friday night US unemployment print and Korean detente. The concerns over a growing trade war were also put aside with sovereign bond yields continuing to rise, while commodities were relatively unscathed by a stronger USD.

The Shanghai Composite is making good on its recent close above the important 3300 point level, lifting just over half a percent to 3325 points. The Hang Seng Index is doing a lot better than this, up nearly 1.5% at 31458 points. This takes it nearly back to its previous daily highs, plus overhanging ATR resistance at 32000 points proper:

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S&P futures are quite positive here on the back of Friday night’s NFP print and the positive reaction in Asia with 2800 points the next level to reach:

Japanese stocks were solid even though the Yen was all over the place, with the Nikkei 225 closing 1.2% higher to 21723 points, getting up its midpoint of control again and ready to breakout if news remains positive. The USDJPY pair gapped down this morning before recovering somewhat in the latter half of the session, still above its downtrend line but there are clear price action signs here that this breakout could be false:

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The ASX200 had a mild start to the week compared to other Asian markets, closing about 0.5% or 33 points higher to be still shy of the 6000 point barrier. The Aussie dollar is not helping here, making new highs as it moves inexorably towards 79 cents against USD, almost hitting a two week high:

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The economic calendar starts the week slowly with the usual post NFP weekly Treasury auctions the only event of note.