Trump’s address to the US in primetime had almost no impact on markets trading here in Asia, despite him not invoking the emergency use of powers to fund the wall (aka fence aka distraction device), thus setting up another stalemate with the polarised US Congress. Instead, markets are pivoting to any good news coming out of the US China trade talks which continue into their third day.
The Shanghai Composite is up 1.4% to 2564 points as confidence comes back, now building clinging above previous support at 2500 points. The Hang Seng Index is soaring as well, up nearly 3%, up to 26549 points. This is just now well above previous support at 25600 and sets up a new rally to get back above the previous highs at 27000 points:
US and Eurostoxx futures are up going into the London open with the four hourly S&P 500 futures chart continuning to build on the new weekly high and ready to tackle the psychologically important 2600 point level:
Japanese stocks had a solid session as expected with the Nikkei 225 lifting 1% to keep building above 20000 points, closing at 20418 points. The USDJPY has lifted again, almost getting through the 109 handle, after recently breaking through significant resistance at the 108.50 level:
The ASX200 did well even considering the dwelling approval print and the higher Aussie dollar, casting aside macroeconomic reality for correlated risk sentiment, lifting nearly 1% higher to 5778 points. The Aussie dollar has continued to make good on its recent gains, now up to the 71.50 level against the USD, after a minor quibble over the dwelling approvals early release: