A very solid positive start to the trading week here in Asia following the non-hawkish language on Friday from Jackson Hole, with most stock markets rising across the region. The lack of taper talk is keeping risk spirits elevated, with the new record high on Wall Street plus a goldilocks personal inflation print on Friday night translating into more risk taking locally. The USD remains weak against the undollars, with gold holding on above the $1800USD per ounce level with a minor retracement due to overextending too much on Friday night:
The Shanghai Composite just finished in the green after almost breaking below the 3500 point level during the session, closing 0.2% higher at 3512 points while the Hang Seng Index lifted slightly higher, finishing 0.3% higher at 25487 points. Japanese stocks did even better, with the Nikkei 225 finishing 0.5% higher to close at 27789 points, advancing on its small swing long play from last week:
Australian stocks have started the trading week well enough, with the ASX200 closing 0.2% higher to just get back above the 7500 point level. Meanwhile, the Australian dollar has pulled back just below the 73 handle, still looking strong after its sizeable breakout on Friday night:
Eurostoxx and S&P futures are steady going into the London open, as the four hourly chart of the S&P500 shows price continuing the strong bounce off short term support at the 4460 point level. The 4500 point level could well be the next short term support level to springboard ever higher:
The economic calendar starts the week with a big one- German inflation estimates for August – followed by pending home sales in the US.