by Chris Becker
Stock markets having rallied across Asia – save for mainland China – with the return of Japanese traders and a still ebullient Wall Street overnight. Gold is floundering however, pushed well below recent support levels and just hanging on above the $2000USD per ounce level going into the London fix, with silver putting in a potential double top pattern as well, now breaking below the $28USD per ounce level:
In mainland China, the Shanghai Composite was positive before the lunch break, but has broken down towards the close, off by 0.4% to 3366 points, while in Hong Kong the Hang Seng Index has swung wildly higher, launching nearly 3% to be above 25000 points again. Japanese stock markets reopened from their long weekend break with the Nikkei 225 closing 1.9% higher at 22750 points, with the USDJPY pair starting to lift again in line with risk appetite, getting past its Friday night surge level above the 106 handle:
The ASX200 eventually finished 0.5% higher at 6135 points while the Australian dollar had a failed breakout mid-session, now retracing going into the London open as momentum weighs the Pacific Peso down alongside other undollar assets like gold:
Eurostoxx and S&P futures are up over 1% with the S&P500 four hourly chart still showing no signs of reversal of the previous week’s breakout above 3270 points, and although momentum is diverging as the NASDAQ failed to make another new record high overnight, this can easily turn on any good news – all bad news has been discounted for 2020!
