Asian share markets have started the week in a generally upbeat mood, save for the ASX200 which finished with a scratch session due to a bounceback in the Australian dollar. The Trump-ABe meeting hasn’t produced any gaffes while the latest Chinese industrial profits result was a lot lower than expected, it had almost no impact on risk taking.
The Shanghai Composite surged after the long lunch session and closed nearly 1.4% higher to 2893 points, while the Hang Seng Index has closed with a near scratch session, up only a few points to 27367 points at least not making any new daily lows. The daily chart shows a deceleration pattern with a bottom potentially forming here at the 27000 point level:
Eurostoxx futures are steady with very light trading conditions already baked in due to the UK/US long weekend. The four hourly chart of the S&P500 chart shows a potential follow through after Friday’s bounce off terminal support at the 2800 point level but it remains to be seen if this can be turned into a swing play with significant resistance overhead at 2840 and the 2850 or so points:
Japanese share markets are up slightly with the Nikkei 225 closing 0.3% higher to 21182 points responding positively to the Abe/Trump meeting and Governor Kuroda’s recent comments. The USDJPY pair has finally pushed higher after a solid Monday morning open, now at the mid 109’s but nowhere near out of trouble:
Australian stocks went nowhere with the ASX200 falling a handful of points to remain solidly below the 6500 point barrier, closing at 6451 points. The blame could be put at the feet of the Australian dollar which is resurging alongside other undollars – including Bitcoin! – starting the week with a follow through from its Friday night swing play, currently at 69.40 going into the European session:
The economic calendar starts the week very slowly given that its a holiday in both the US and UK with only a minor ECB speech to watch in Brussels, as all eyes will be on the outcome of the European Parliamentary elections.