Asian stocks are in solid buying mode today as risk markets react positively to the “not too bad, all things considering” inflation print in the US overnight as Wall Street bounced nearly 2% dragging everything else higher as USD sunk. Yen remains strong while the Australian dollar is pushing up against the 71 cent level. Meanwhile oil prices are just holding on to their recent daily lows, with Brent crude hovering at the $97USD per barrel level, while gold is the odd undollar, finding significant resistance at the $1800USD per ounce level as it deflates against King Dollar:
Mainland Chinese share markets are soaring higher with the Shanghai Composite up more than 1.6% to 3281 points while the Hang Seng Index has taken back most of its previous loss to close more than 2% higher at 20031 points. Japanese stock markets were closed for yet another holiday as the USDJPY pair holds on to its overnight lows just below the 133 handle:
Australian stocks had quite a solid effort today with the ASX200 pushing back above the 7000 point level, closing more than 1% higher to 7070 points. The Australian dollar pulled back ever so slightly after its rocket ride last night but has found more strength this afternoon to almost push through the 71 cent barrier:
Eurostoxx and US futures are pusher higher going into the London session, as the S&P500 four hourly futures chart now showing pressure to extend further above the 4200 point level after last night’s breakout as the positive reaction to the “not-bad” inflation print continues:
The economic calendar calms down a little tonight with the latest US PPI on the agenda.