Macro Afternoon

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It’s been a much better start to the trading week then many thought possible with S&P futures indicating a 1% drop at least across Asian stock markets on the open, with many risk currencies gapping down this morning, before a swift reversal has seen risk come back much stronger. The fallout form the short squeeze on Wall Street is not yet over – wait for more HODLs to happen tonight, with silver seemingly the next squeeze in their sights, gapping above $28USD per ounce this morning in a big breakout:

The Shanghai Composite is up about 0.4% going into the close, but still unable to get back above 3500 points, while in Hong Kong the Hang Seng Index is zooming higher, up nearly 2% to be at 28832 points. Japanese markets are also rebounding with the Nikkei 225 about to finish 1.4% higher at 28056 points with the USDJPY pair extremely stable given the other majors moving around on the open, still holding on to its Friday night session closing level in the high 104s:

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The ASX200 was able to pop back above the 6600 point level, rising 0.8% to close at 6663 points while the Australian dollar gapped below the 76 handle on the open but has rallied over 60 pips to be back at the mid 76s but still looking weak going into the London open:

Eurostoxx and S&P futures have rebounded in kind going into the European open, with the four hourly chart of the S&P500 wanting to get back into the green with a swing play, but the momentum readings are still oversold so I wouldn’t get excited until the 3750 level at least is broken through. Its going to be a very interesting session tonight:

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The economic calendar starts the week quietly, with German retail sales before ramping up to US ISM manufacturing PMIs for January.