A much more positive end to the week/month/quarter/year here in Asia, with risk markets lifting basically on the migration policy getting nutted out in the EU. The Euro lifted on the deal, dragging up the Aussie dollar and other undollars with the Yuan coming back slightly from its big selloff against USD.
Chinese stocks are rallying, with the Shanghai Composite getting back above the 2800 points level, zooming 1.5% higher going into the close at 2826 points, staving off what is still a bear market. The Hang Seng Index is up similarly, up 1.3% to 28872 points. Todays action overshadow the last couple of sessions, but there’s still daylight below to 24000 points:
S&P futures are building a little stronger here alongside Eurostoxx on the back of the migration deal. The four hourly chart is showing another attempt of breaking the current downtrend, so we’re in for another critical session tonight:
Japanese stocks were not as positive as others with the Nikkei 225 up only a few points to 22278, again unable to breakout into a full correction as support remains strong. The USDJPY pair is making another leap higher here, almost reaching the former highs near the 110.70 and could break there tonight:
The ASX200 is holding here, barely up a few points as it struggles with a slightly stronger Aussie dollar, up three points to 6218, almost ready to close out the week positively. The Aussie dollar has been a great benefeciary of the EU deal, zooming straight up above ATR support at the 73.60 level overnight and above the steeper downtrend line. Its still not out of the woods here, but an expected uptick from a lot of selling recently:
The data calendar finishes the week with three big ones, German unemployment, EU CPI and US core personal consumption expenditure.
Have a good weekend!