It’s been a solid start for risk assets here in Asia with Wall Street futures goosed by a Trump drive-by, thus lifting all other boats with big turnaround on stock markets. Meanwhile, the USD is gaining ground against most of the undollars, with gold retreating back below the $1900USD per ounce level:
The Hang Seng returned to be up more than 1.5%, now above 24800 points while Japanese stock markets reopened higher with the Nikkei 225 taking back all of Friday’s losses to close 1% higher at 23307 points as the USDJPY pair gapped higher this morning, getting back to the mid 105 level that it held all of last week:
The ASX200 was the biggest mover, helped along by the reversal in risk plus the Federal Budget news with a big surge, closing 2.5% higher at 5941 points. The Australian dollar has gapped higher despite the falls in commodity prices and almost returned back to last week’s high near the 71.80 level with four hourly momentum well positive:
Eurostoxx and S&P futures are up significantly, ready to take back Friday’s losses with the S&P500 four hourly chart looking to get back to last weeks intra-session high near the 3370 point level:
The economic calendar starts the week relatively slowly with the US ISM non-manufacturing print for September, plus the usual post-NFP Treasury auctions, but all eyes will be on the WhiteHouseVirus fallout.