By Chris Becker
Here comes the breakout and the second phase in the relief rally as risk markets go ga-ga over a potential vaccine for the coronavirus, while lapping up all the central bank “we will throw the kitchen sink at risk assets” mantra that continues to be rolled out by all and sundry. The biggest move was in oil markets, with Brent up nearly 8% while European stocks launched over 5% higher across the continent as USD retreated against the majors, except gold which all of a sudden is no longer the prettiest flower on show. Expect buying with abandon on the open here in Asia this morning.
Looking at share markets from yesterday’s session where in mainland China, the Shanghai Composite was up 0.2% to start the week almost reaching 2900 points, while the Hang Seng Index closed some 0.6% higher at 23934 points, holding just above the recent daily lows as resistance proves still looms overhead. This level was pushing the market back down to its recent lows with the potential to break below daily support at 23200, but note that daily momentum is about to pickup with futures indicating a surge over 24000 points this morning:
