Asian stocks have rebounded sharply across the region, starting the week on a more positive tone compared to the carnage on bond and currency markets at the end of last week, with the falls on Wall Street seemingly contained already as S&P futures bounceback in kind. Bitcoin has started the week meakly as expecting, opening at the $46K level after falling down to the mid-week crash level on Friday night – the low $45K’s the area to watch ahead:
The Shanghai Composite is up nearly 1% going into the close, currently at 3539 points while the Hang Seng Index is now up over 1.1% or to 29302 points, still nowhere near its near 3% drop on Friday. Japanese markets are bouncing back the hardest with the Nikkei 225 about to close 2.1% higher at 29582 points while the USDJPY pair is holding on, starting the week in its new monthly high above the 106 handle:
The ASX200 also took in the big bounce, lifting more than 1.7% to almost get back above the 6800 point level, helped along with some RBA bond buying, while the Australian dollar was able to put in a 50 pip “recovery”, back to the mid 75’s but this is not a pretty chart:
Eurostoxx and S&P futures are lifting firmly going into the European opening session with the four hourly chart of the S&P500 showing a desire to return back to the previous mid-week highs but volatility still inhibiting any further upside for now:
The economic calendar is packed tonight, with German inflation figures for February the big one first, then the US manufacturing PMI print followed by a slew of central bank speeches that are likely to add to bond and currency market volatility.