More risk taking – literally – as stock markets continued higher on the surge on Wall Street overnight as the US prepares to reopen its economy as fast as possible, despite not flattening its curve in any shape or fashion. The ECB meeting tonight is likely to be a repeat of the Fed’s with the “whatever it takes” attitude and damn the debt load in an attempt to forestall the deflationary forces at work. Bond markets are the only steady boat in this rising tide.
The Shanghai Composite has closed 1.3% higher at 2860 points, finally finding some forward momentum while the Hang Seng Index was closed for a holiday. The daily chart shows price action wants to test overhead resistance at the 25000 point level next:
Japanese share markets reopened after yet another holiday with the Nikkei 225 wasting no time in putting on the gains, finishing 2.1% at finally clearing the 20000 point barrier to close at 20193 points. Meanwhile the USD selling continues as the USDJPY pair retested its previous low and found it wanting, slipping going into the London open to be below the 106.50 level as it returns to its downtrend:
The ASX200 had a big day, with everyone going all in despite big cuts to bank dividends with the market up over 2% to close at 5522 points, as the Aussie dollar continued higher to be above the mid 65 level and still overextending its strong rally from Friday night:
Eurostoxx and S&P futures are up between 0.6% and 1% going into the London open on the back of the lower USD with the four hourly chart of the latter showing an accelerated move that wants to get back above the 3000 point level as fast as possible – kind of like the desire to get the 2nd wave of COVID-19 as fast as possible too..
