The start of the trading week is here, and while regional risk analysts are pointing squarely to a probable Evergrande default and then overseas to the underwhelming US unemployment print on Friday night, the risk takers writ large are bidding everything higher, save local stocks. The USD is strengthening against most of the risk currencies, with Yen crosses surging as well, while gold is barely holding on above the $1750USD per ounce level. Meanwhile Bitcoin has surged higher yet again, breaking out above the $56K level, as it barrels in on its previous record high, having gained more than 20% in the last week:
The Shanghai Composite is up 0.4% to be back above the 3600 point level while the Hang Seng Index is following through on its previous surge, up more than 2% to the 25391 point level. Meanwhile Japanese markets continue to find strong bidding support with a near 1.5% gain by the Nikkei 225 to close at 28484 points. The USDJPY pair did the heavy lifting as Yen sells off, pushing right through the mid 112 level after breaking through on Friday night with no Yen buying evident:
Australian stocks are the losers as NSW opens up, with the ASX200 closing 0.3% lower to 7299 points while the Australian dollar is pulling back towards the 73 handle and below the previous weekly high despite some strong moves on Chinese markets:
Eurostoxx and S&P futures are barely moving however going into the London open after their not very impressive Friday night sessions, with the four hourly chart of the S&P500 showing a deflation definitely at hand as price heads back to the previous ATR resistance level at 4360 points as it failed to make a new weekly high but still staving off a wider correction:
The economic calendar is very light on with only a few Treasury auctions to keep an eye on.