Stock markets in Asia are generally in a positive mood, absorbing the failed APEC conference with aplomb and the notably volatile Brexit drama from the weekend. But is this the calm before the storm? The Australian dollar has maintained its Friday high while the local stock market was the standout in a poor start to the week.
The Shanghai Composite is up 0.3% to 2687 points going into the close and continues to build above key support at the 2600 level. The Hang Seng Index is up about the same or 0.4% higher to 26290 points, with the daily chart again showing buying support keeping it above the previous support level at 26000 points as this correction tries to find a tentative bottom:
US and Eurostoxx futures are flat with the four hourly S&P 500 futures chart now showing a potential bullish inverse head and shoulders pattern as confidence slowly returns so watch for a significant break above the high moving average at the 2735-2740 region:
Japanese stocks have come back despite the Yen’s gains, with the Nikkei 225 up 0.5% to 21794 points. The USDJPY pair gapped lower on the Monday morning open but hasn’t moved to stay at the 112.70 level or therabouts, still on trend to go lower here, but considerably oversold:
The ASX200 is the standout, down nearly 0.8% to 5683 points, following through on its inability to finish last week back above the 5800 point support level as buyers continue to desert. The Aussie dollar has paused here after the big blip higher on Friday night, hovering just above the 73 handle:
The economic calendar starts the week slowly with a few Treasury auctions to watch out for.