It’s damn the torpedoes and full speed ahead as risk markets go into tonight’s Brexit vote with a lot of confidence, as the return of Japanese markets helped buoy the risk complex across Asia today. Yen sold off helping Japanese stocks while the Aussie dollar advanced slightly and Pound Sterling remained high in advance of The City open.
The Shanghai Composite is up by nearly 1.1% or so going into the close, shrugging off the advancing Yuan fix and forgeting about the previous trade figures, currently at 2564 points. The Hang Seng Index is up even more, closing about 1.8% higher to 26768 points, finally able to breach the weekly downtrend channel (black line) on the daily chart and rebuffing yesterday’s clawback to the moving average band:
US and Eurostoxx futures are up about 0.5% or so going into the London open with the four hourly S&P 500 futures chart showing another attempt at breaking through resistance at the psychologically important 2600 point level:
Japanese stock markets reopened today with the Nikkei 225 exceeding expectations by closing nearly 1% higher to 20555 points. More volume in USDJPY trading saw the pair advance to the high 108’s and breaking above the symmetrical triangle pattern forming on the four hourly chart:
The ASX200 had a better session today, finishing 0.7% higher to 5814 points, getting over the 5800 mark for the first time since late November last year. The Aussie dollar had a small advance and remains above the 72 handle as traders prepare for a more buoyant risk-on mood despite the upcoming volatility in Brexit (or not?):
The economic calendar will focus squarely on the UK Parliamentary vote on May’s Brexit deal tonight.