A fairly positive day on equity markets across Asia in response to the solid uptick on Wall Street overnight, although caution reigns as the US China trade talks get underway so Chinese shares are slowly retreating as Yuan appreciates against USD.
The Shanghai Composite is down around 0.3% or so at 2524 points as confidence wavers, still clinging above previous support at 2500 points. The Hang Seng Index is down about 0.1% or so, down to 25806 points. This is just above previous support at 25600 but the lack of any new real daily high combined with daily momentum not yet positive suggests further sideways action:
US and Eurostoxx futures are up slightly going into the London open with the four hourly S&P 500 futures chart showing an eagerness to build on the new weekly high and ready to tackle the psychologically important 2600 point level:
Japanese stocks were the best performers in the region, with the Nikkei 225 lifting 1.1% to build above 20000 points, currently at 20276 points going into the close. The USDJPY has lifted again, almost getting through the 109 handle, breaking through significant resistance at the 108.50 level:
The ASX200 did well as the Aussie dollar weakened ever so slightly, lifting nearly 0.7% higher to 5722 points. The Aussie dollar has failed to make good on its recent gains, falling slightly as the trade balance figures came in lower than expected, retreating back to the 71.30 level against the USD, ripe for a reversion back to trailing ATR support:
The economic calendar has two main releases to keep an eye out on, first German industrial production, then the US November trade balance. Plus Trump’s speech on The Wall…