Macro Afternoon

Another strange day here in Asia as risk does a turnaround as the focus of Trump’s ire moved to Europe and away from China ever so briefly. This caught the shorts short (guilty as charged) and lead a rally across the region with Chinese stocks leading the way.

The Shanghai Composite has recovered its previous loss to be up more than 2% to close at 2837 points, getting back above the previous level of support at 2800. The Hang Seng Index is up about half that, also taking back most of yesterday’s selloff, moving 1% higher close at 28590 points. This sort of price action points to a probable bottom here on the daily chart at 28000:

S&P futures are up alongside Eurostoxx, with the latter indicating a positive 0.3% move higher on the open. US stocks are ticking along even with last nights pullback with the S&P500 four hourly chart suggesting a bounce off of trailing ATR support to then threaten the previous high near 2800:

Japanese stocks surged higher on the back of a very weak Yen with the Nikkei 225 up more than 1%, closing at 22187 points, reclaiming the previous session losses and now back above daily ATR support at the 22000 point level. The USDJPY pair has burst through the 112 handle, with momentum extremely overdone, but definitely signalling a changing market sentiment here on USD:

The ASX200 joined in the fun, taking back the previous loss to be 0.7% higher, closing at 6268 points, still building upon what has been sturdy buying support throughout this trade war so far. The Aussie dollar however remained below the 74 handle with only a minor risk-on bounce that has short legs so far:

The data calendar continues with a very timely print, the latest monthly CPI result from the US plus initial weekly jobless claims.

Comments

    • proofreadersMEMBER

      The “heavy lifting”, still in progress, is thanks to the RC – fairly and squarely? It has nothing to do with wet lettuce leaves?

      • Exactly. If it wasn’t for the RC, nothing would have changed. Wayne Byres and APRA have been caught out as frauds. He should be sacked and taken in front of a judge for dereliction of duty.

      • Cyclone Ranger

        Yep.

        Margin Call of Duty II.

        Followed by trying to find a Judge who doesn’t own an IP.

        Judge Dredds – the REpocalypse

        .. springs to mind.

    • “The changes in lending practices to date do not seem to have had an obvious impact on housing credit flows in aggregate”

      “Credit growth appears to be slowing somewhat at the moment”

      He must be an excellent poker player.