Risk sentiment turned around overnight as markets reacted positively to the latest Federal Reserve rate hike, with signalling that its not going to go as high as expected. This sent Wall Street up more than 2% across the board and pushed the USD down against all the undollars, with the Australian dollar almost pushing through the 70 cent level. Bond markets saw some roundtripping of yields with 10 year Treasuries moving slightly below the 2.8% level while commodity prices were still volatile with Brent crude bouncing back above the $100USD per barrel level while copper rose nearly 1% and gold did the same to return to its previous weekly high at the $1730USD per ounce level.
Looking at share markets in Asia from yesterday’s session, where mainland Chinese share markets went nowhere with the Shanghai Composite dead flat at 3275 points while the Hang Seng Index is having yet another reversal, this time losing more than 1% to close at 20671 points. Sentiment continues to wane on the daily chart with considerable overhead resistance and daily momentum readings remaining nearly oversold as the previous swing play reverts back to the downtrend although some support is building at the 20000 point level:
Japanese stock markets are basically treading water, with the Nikkei 225 up 0.2% to 27715 points. Futures on the daily chart are now suggesting a proper breakout after the reaction to the Fed, with resistance at the previous highs at 28000 points the area to beat in today’s session. Daily momentum is still in an overbought status and while price has made a new weekly high, this market is in a pause phase for now with the overall monthly/weekly trend (sloping black line above) still in play:
