Asian share markets were given a boost this morning with some progress on the US/China trade talks, building on the positive mood on Wall Street on Friday night, with the Chinese Yuan firming to new six month highs against USD.
The Shanghai Composite is up more than 4% going into the close, soaring above 2900 points as traders double down on the good news. The Hong Kong Hang Seng Index however is less sanguine, barely treading water and closing at 28837 points. The current rally remains intact , with no new close below the high moving average or the trendline on the daily chart:
US and Eurostoxx futures have advanced from their Friday night highs with the S&P 500 poised to break the psychologically important 2800 point level later tonight:
Japanese stock markets advanced despite a stronger Yen, with the Nikkei 225 lifting nearly 0.4% higher to 21529 points, remaining well above key resistance that had been broken recently. The USDJPY pair tried to break above trailing ATR resistance at the 111 handle but was hit hard as USD weakness bit on the China trade talk news, now hovering at the Friday session lows at 110.60 or so, with momentum indicating a breakdown is imminent:
The ASX200 has had another solid start to the trading week, rising just over 0.3% to close at 6186 points, maintaining itself well above the key 6100 point resistance level and setting up for further gains above 6200. The Australian dollar pipped higher on the China news but has been unable to follow through later in the session, stalling at the longer term downtrend line at the mid 71 handle:
The economic calendar starts the week with the usual Brexit shenanigans to sort out from over the weekend, including a speech by BOE Governor Mark Carney later tonight, then we get US wholesale inventories.