The imminent trade tariffs are not abating risk on Asian share markets with the return of risk on Wall Street last night filtering its way through here locally. The closely watched NFP combined with further Trump rhetoric on oil prices should make for a very interesting session on both sides of the Atlantic tonight.
The Shanghai Composite is no longer in a selling mood, bouncing strongly after the break to be up 1% going into the close at 2762 points, but still well below the previous level of support at 2800. The Hang Seng Index is up about half that, or 0.6% to 28366 points. There is a potential bottom forming here at 28000:
S&P futures are soaring ahead with caution no longer reigning putting paid to my caution about being bearish US stocks. The short term bottoming pattern developing here on the four hourly chart is coming to fruition here as trailing ATR resistance is coming under pressure on a breakout:
Japanese stocks are rallying the strongest as Yen sells off with both the TOPIX and Nikkei 225 lifting more than 1%, with the latter currently at 21812 points, trying to get back above daily ATR support at the 22000 point level. The USDJPY pair continues its own bounce off ATR trailing support with a strong signal here for USD bulls, still staying above a rising high moving average on the four hourly chart:
The ASX200 is going along for the ride and looks like closing the week out on a strong note, up about 0.8% to be well above 6200 points, currently at 6269. The Aussie dollar is holding up, trying to lift back up to the 74 handle at trailing ATR as USD weakens, matching the Friday night high, prepositioning for the NFP tonight:
The data calendar focuses squarely on US unemployment tonight – the non-farm payroll (NFP) for June.