A relatively solid day for risk markets here in Asia in response to another surge on Wall Street overnight, despite growing concerns of a big second wave of COVID-19 in Europe and the US as the northern hemisphere moves into the cooler months. The USD is remaining firm against most of the majors with gold trying to re-gain its lustre from its previous fall below the $1900USD per ounce level, holding on to short term support just below $1890:
The Hang Seng Index has slipped in its recent advance, falling some 0.7% to 24079 points while Japanese stock markets did the heavy lifting to a new high, the Nikkei 225 closing more than 1% higher to 23677 points. Meanwhile the USDJPY pair is stalled here just below the 106 handle after previously breaking above the recent session highs (black horizontal line) – can it hold on here tonight:
The ASX200 had another solid session, gaining a further 1% to finish at 6102 points, extending its gains above the 6000 point barrier broken yesterday. The Australian dollar is holding on firm here after recouping some of its losses, currently at the mid 71’s going into tonight’s session but not yet out of the woods:
Eurostoxx and S&P futures are up solidly with the S&P500 four hourly chart looking to extend further above the 3400 point level and the previous highs as expectations of more stimulus fill the punchbowl again:
The economic calendar follows up the FOMC meeting minutes with the latest from the ECB meeting, then US initial jobless claims.