The bounce stumbled overnight but has continued here in Asia as the news of the Federal Reserve’s surprise rate cut in the wake of the economic impact of the coronavirus has been absorbed without the fear on Wall Street. Further, a lead by VP Joe Biden in Super Tuesday has also assailed the Streets fear of a Sanders nomination, although this may be shortlived. Gold held onto its overnight gains to remain well above the $1600USD per ounce while the Aussie dollar floats just below the 66 cent level.
The Shanghai Composite is trying to get back above 3000 points, barely up a few points after the lunch break to 2997 points while the Hang Seng Index is putting in another scratch session to be up 15 points or so to 26317, just holding on to these gains:
Japanese share markets are up tentatively after the previous losses, with the Nikkei 225 up almost 0.4% going into the close at 21148 points. The USDJPY pair remains the real proxy to watch as it remains unable to get back above the 108 handle and remains stuck at the previous January lows:
The ASX200 was the odd one out as a bit more fear grips the nation, stocks losing nearly 1.6% to 6320 points. The RBA rate cut has had no effect on the Australian dollar although it is finding some resistance at the 66 handle following last nights’ Fed cut:
Eurostoxx and S&P futures are lifting slightly going into the European session, with the four hourly chart of the S&P500 showing an attempt to get back above ATR resistance at the 3080 point level, as the psychologically important 3000 point level becomes the anchor going forward. But it still smells dead cat to me:
The economic calendar includes a slew of preliminary European PMIs while in the ‘States, the outcome of Super Tuesday plus the actual ISM services print will dominate.