Friday night saw a big lift on trans-Atlantic share markets with US retail sales and consumer sentiment surprising to the upside, while corporate earnings at least weren’t as disappointing. Wall Street rallied nearly 2% across the board while the USD finally had a breather against everything undollar with Euro looking to bottom out at parity briefly while the Australian dollar also got out of its funk to almost cross above 68 cents. Bond markets saw a firming of yields with 10 year Treasuries down to 2.9% again as US interest rate futures still imply a near 80bps rate rise at the next Fed meeting. Commodity prices were still volatile with Brent up more than 2% to recover above the $100USD per barrel level while copper lifting slightly as gold made a new low again, almost falling below the $1700USD per ounce level.
Looking at share markets in Asia from Friday’s session, where Chinese share markets slipped and then fell face first going into the close on the back of the GDP print with the Shanghai Composite closing more than 1.6% lower to 3228 points while the Hang Seng Index slumped more than 2%, finishing at 20297 points. Sentiment here is really waning as the daily chart continues to firm considerable overhead resistance and a series of lower daily lows as price retraces below the early June lows around the 20600 point area. Watch daily momentum readings that are now oversold carefully for signs of a follow through below ATR support at 20000 points proper:
Japanese stock markets were the only positive note in the region, with the Nikkei 225 index closing 0.5% higher at 26788 points. The daily chart however is showing a potential breakout brewing above stiff resistance at the 27000 point area with daily momentum finally able to get out of its negative funk. Price has made a new weekly high, which should support further upside here as the lead from Wall Street on Friday helping:
