A surge in Chinese shares is spurring on risk appetites across the region, with stocks lifting strongly this afternoon, taking risk currencies like the Australian dollar with them but leaving gold and the ASX200 behind. The reason behind the catalyst is unclear, apart from a technical one – its a five year high for Chinese stocks! Momo and fomo to the max…
In mainland China, the Shanghai Composite is up 5.4%, yes over 5% higher in a day to 3324 points while in occupied Hong Kong the Hang Seng Index shout out the gate by over 3% to 26195 points, with the full session clear off the uptrend of the former weekly highs throughout June and May:
Japanese stocks put in good sessions too, with the Nikkei 225 lifting 1.8% to 22714 points with the USDJPY pair finally found some life, gapping down slightly before re-engaging and lifting up past the mid 107s and staying there going into the City session:
The ASX200 was the odd one out, opening down in line with SPI futures, then peeping above the scratch level at lunchtime before selling off in the close as the Victorian border closure dampened risk appetite, closing 0.7% lower at 6014 points. The Australian dollar however shoved into a higher gear, almost hitting the 70 handle after a solid start to the usual Monday morning gap, matching the previous weekly high and getting well overbought:
Eurostoxx futures have caught the Chinese bug (no, not that one) and are up over 2% and S&P futures are up at least 1% higher and will play catchup after the long weekend:
Farewell Ennio Morricone……( a selection of his finest films scores)
The Good, the Bad and the Ugly
A few dollars more
Once upon a time in the West
The Mercenary
The Sicilian Clan
Once upon a time in America
The Mission
Cinema Paradiso
Frantic
1900
The Hateful Eight