Asian stock markets have reacted in a positive fashion to the Trump tariff announcement, fading the news, although locally the ASX200 dropped as the Aussie dollar lept higher on the RBA minutes and the easing of trade tensions (i.e a known known).
The Shanghai Composite is in full reverse, currently up 1.4% going into the close at 2689 points, bouncing off key medium term support at the 2600 point level. The Hang Seng Index however is putting in a scratch session, closing down a few points to 26937 points, unable to get out of this current funk with the high moving average on the daily chart providing short term resistance:
S&P futures have moved up slightly but the Eurostoxx is off 0.3% or so, so it’s not clear that risk is back on tonight. The four hourly chart of the S&P500 shows a bounce off ATR trailin support at the 2885 point level, but this is tentative at best:
Japanese traders returned from their holiday and boosted stocks higher with the Nikkei 225 closing 1.4% higher to 26991 points. The USDJPY pair is just below the 112 level as it too benefits from more trading in Yen, bouncing off very short term support at the 111.70 level and getting ready to tackle last Friday’s session high:
The ASX200 has taken back all of yesterday’s gains on the reaction to the RBA minutes, falling nearly 0.4% to close at 6161 points. The Aussie dollar lept higher, bursting through the 72 handle level, almost matching last week’s intrasession high, so we could see a follow through above 72.30:
The economic calendar includes an important speech by Mario Draghi in Paris that will be Euro-sensitive but not much else tonight.