By Chris Becker
Before the open this morning, markets are reacting – hastily of course – to the US plans to shoot themselves purposely in the face with very early re-openings of their economy, but this has been almost overshadowed by more OPEC communication where they’ve admitted more or less that more production cuts are on the way. This has seen oil futures jump over 25% instantly, dragging up commodity proxies like the Aussie dollar as well. Wall Street closed in a positive mood so combined with these catalysts we should see a risk on day here in Asia, as absurd as that is!
Looking at Asian share markets yesterday, where the Shanghai Composite was down before the lunch break but came back at the close, finishing up 0.3% to 2821 points while the Hang Seng Index had a second day of losses, down 0.6% to 24006 points, as its nascent breakout runs out of steam. This breakout was getting interesting with growing support at the 23000 point level but appears to be stalling out as momentum is not yet positive – watch for a potential breakout again above 24000:
