Stocks stalled on Friday night with the suprisingly good US non farm payroll aka unemployment print on Friday night with mixed reactions in other risk markets. The USD fell back a little against most of the undollars, although Euro almost approached parity before bouncing back. Meanwhile the Australian dollar pushed a little higher above the 68 handle but still managed a new weekly low. Bond markets jump in yields on the NFP print with 10 year Treasuries pushed up to the 3.1% level, with interest rate futures continuing to firm up at least a 75bps rise at the next Fed meeting. Commodity prices remain volatile with oil prices bouncing back more than 2%, but copper and gold pulled back again, the latter on the ropes at the $1740USD per ounce level.
Looking at share markets in Asia from Friday’s session, where Chinese share markets surged at the open but retraced going into the close with the Shanghai Composite losing 0.2% to close at 3356 points while the Hang Seng Index was able to find some buyers later, finishing 0.4% higher at 21725 points.The daily chart was showing a potential rollover building here as price action rejected the previous highs at the 22000 point level as considerable resistance still keeps this market in check. Futures are suggesting a flat start to the trading week, but watch out for any attempt to break through the recent daily highs at the 22200 area:
Japanese stock markets were looking to be the best in the region, but stumbled at the close with the Nikkei 225 index barely finishing 0.1% higher at 26517 points. Risk sentiment on the daily futures chart is slowly reversing here with another solid session likely to start the trading week with a second close above the high moving average. While daily momentum is still on the negative side, the key area to watch is previous short term resistance at the 27000 point area that once breached could spell another short term rally:
