Risk markets have reacted positively to the summit in Singapore with green across the board on stock markets. The USDJPY risk proxy has made a new two week high, with S&P futures also suggesting a new monthly high that should presage a further rally on Wall Street.
The Shanghai Composite had a great session, lifting nearly 0.8% to close at 3078 points, ready to tackle short term overhead resistance at 3100 points. The Hang Seng Index did about half that, up 0.4% to close at 31194, bouncing off short term support at the 31000 point level and poised to breakout:
S&P futures are up alongside Eurostoxx, pipping above the February highs suggesting we’re in for another positive session tonight:
Japanese stocks lifted exactly together with both the TOPIX and Nikkei 225 closed 0.3% higher at 22878 points, almost matching the May high. The USDJPY pair however did beat its former high, lifting well above the 110 handle as momentum looks a little overcooked here on the four hourly chart, suggesting a small pullback to the high moving average:
The ASX200 eked out a small gain, up only 0.15% to finish at 6054 points. The Aussie dollar is still dicing with the 76 handle and looks set to push below that level tonight as the USD bulls circle the gate:
The data calendar gets busy tonight with the German ZEW survey plus US CPI for May.