Asian share markets have diverged with Chinese bourses (except the satellite ASX200) dropping while Japanese stocks are helped along by a much lower Yen as USD continues to strengthen against the major currencies. Gold is struggling after selling off overnight and is barely moving at the $1866USD per ounce level with traders of all sorts waiting for the upcoming FOMC meeting later this week. Meanwhile Bitcoin is consolidating here after pushing up through the $40K level making a new weekly high and taking out two of its previous important resistance levels as the bottom pickers come back in strength:
The Shanghai Composite returned from its long weekend and immediately sold off, down nearly 0.8% to 3558 points, while the Hang Seng Index is not doing much better, down 0.6% at 28659 points. Japanese stocks however are no longer in hesitation mode with a big rally on the Nikkei 225, closing 1% higher at 29470 points as the USDJPY pair remains elevated above the 110 handle after its surge yesterday, with momentum way overbought here:
Australian traders are also in a buying mood with the ASX200 closing nearly 1% higher and push well above the 7300 point level at 7392 points while the Australian dollar flat lines in response to the latest RBA minutes, barely above the 77 level and unchanged from Friday nights finish:
Eurostoxx and S&P futures are lifting steadily going in the London open with the four hourly chart of the S&P500 showing a continuation of the bull market run – now up over 40% in the last 12 months:
The economic calendar will focus squarely on the latest US retail sales print, but there’s also May industrial production numbers as we lead up to the FOMC meeting.