Everything is awesome as markets rally in ecstasy in response to the record breaking US unemployment figures from Friday, and the slowdown in the rate of growth of COVID-19 cases outside the US. In other words, this is probably the eye of the storm before the Trumpvirus goes South, literally. Speculation of a deal between OPEC and Russia on oil production is juicing the oil market as well, adding to risk appetite while the USD has weakened slightly although against Yen its still running strong.
The Hang Seng Index gapped higher and is set to close up 2.2% to 23754 points, finally getting above its high moving average on the daily chart, indicating a breakout is underway and ready to get back to former support at 25000:
Japanese share markets had an even bigger bounce with the Nikkei 225 closing 4% higher at 18576 points, now getting closer to resistance at the 19000 point level as the USDJPY pair continued its Friday rally, breaking through the 109 handle and making a new weekly high:
The ASX200 was the best in the region, closing 4.3% higher as domestic investors remain deluded that everything is coming back to pre-virus conditions, with banks leading the way, closing at 5286 points. Meanwhile the Aussie dollar is still hurriedly going nowhere, although it snuck a peak above the 60 handle as support seems to be building here:
Eurostoxx and S&P futures are up 4% as well as everyone goes all in on a return to normal with the four hourly chart of S&P futures showing a nice big bounce off support at the 2420 point level with the resistance overhead at the previosu weekly highs at 2620 or so the target to beat:
The economic calendar is relatively quiet following the monthly US unemployment print, with some Treasury auctions the only event of note – apart from any communique from the Russians and Saudi’s regarding their oil deal. Watch that space.