Asian markets start the week in a better mood, absorbing the lack of any negative news over the weekend, plus a slight retracement in USD strength that weighs on emerging markets.
The Shanghai Composite looks like starting the week with a positive session, currently up 0.3% to 2675 points, still below what was tentative support until last week’s rout at the 2700 point level. The Hang Seng Index is doing much better, 0.8% higher to 27427 points, still below its own terminal support at 28000 points, but beginning to show tentative signs of a pause in its own correction:
S&P futures are flat compared to their Firday close with Eurostoxx futures up by 0.3% going into the City open. USD strength is still a factor here, but it seems the Turkish situation is calming down, so all eyes on US stocks to keep pushing the whole risk market higher:
Japanese stocks remain quite cautious here, as the Yen moves nowhere in a tight band, the Nikkei 225 closed 0.3% lower at 22199 points, taking back Friday’s gains. The USDJPY pair has basically recovered most of Friday night’s selloff but has stalled going into the London open at the mid 110’s. I’m watching the high moving average on the four hourly chart as short term resistance here:
The ASX200 starts the week with a flat session after previously beating strong resistance at the 6300 point level. It finished a few points higher at 6345 with my target at 6700 still likely in the medium term – if the Aussie dollar maintains this weakness. That’s the fly in the ointment as the Pacific Peso has lifted through the 73 handle continuing its mid-week surge last week, but not yet getting above the too far/too fast level reach on Friday night:
The economic calendar starts the week very slowly with nothing of note tonight aside from the usual Treasury auctions.