Most stock markets here in Asia look like finishing the week on a high note, save Japanese bourses as Yen buyers doubled down throughout the session, hurting domestic stocks. The USD is still under pressure on the other majors with both Aussie and Kiwi advancing, while we await the fallout from Brexit tonight as volatility in Pound Sterling continues to build.
The Shanghai Composite is up 0.7% to 2687 points, going into the close and now building well above key support at the 2600 level. The Hang Seng Index is floating along too, currently 0.3% higher to 26190 points, with the daily chart again showing buying support here pushing it back above the previous support level at 26000 points as this correction tries to find a tentative bottom:
US and Eurostoxx futures are up slightly with the four hourly S&P 500 futures chart still showing a potential breakdown with a bearish head and shoulders pattern but confidence is slowly returning so watch for a significant break above the high moving average at the 2735-2740 region:
Japanese stocks are slightly lower as Yen gains in strength, sending the Nikkei 225 down 0.3% to 21737 points. The USDJPY pair is again being pushed down by Yen buyers, now wavering at recently trailing ATR support on the four hourly chart at the 113.40 level and poised to go lower:
The ASX200 is up slightly despite the Myer shenanigans, currently lifting 0.2% to be at 5749 points, still unable to finish the week back above the 5800 point support level. The Aussie dollar has paused here after a mild push higher on the unemployment print yesterday, not quite getting back up to last week’s high at the 73 handle but it could have some legs here tonight:
The economic calendar closes out the week with a closely watched speech by Super Mario in Frankfurt tonight, then a few second tier manufacturing reports in the US, plus the Baker Hughes oil rig count.
Have a good weekend!