The latest US fiscal stimulus is acting as a positive catalyst across risk markets with Chinese mainland shares finally bouncing back after some soothing words from state media after a dreadful start to the trading week. The USD is steadying against the majors as bond markets also stabilise somewhat as Bitcoin rebuffs its previous historic high above the $57K resistance level where its likely to try again tonight:
The Shanghai Composite is putting in a proper session, up 1.7% to 3415 points while the Hang Seng Index finished 1% higher at 29402 points. Japanese markets are also finding some lost steam with the Nikkei 225 closing 0.6% higher at 29211 points as it tries to get back on its uptrend while the very supportive USDJPY pair has had a modest bounce, not yet back over the 109 handle where it started this week:
The ASX200 is still suffering from a lack of confidence with a dead flat session, closing at 6714 points while the Australian dollar is slowly pushing higher after previously being depressed below the 77 handle, its trying to find some buying support but will run up against resistance at the 77.80 level going into the European session:
Eurostoxx and S&P futures are up around 0.5%, reflective of the more co-ordinated better good market on risk markets with the four hourly chart of the S&P500 showing price staying above the upper end of the downtrend channel and ready to tackle to former weekly highs above the 3900 point level:
The economic calendar includes the latest ECB policy rate meeting and subsequent press conference with US weekly initial jobless claims to follow.