Asian stocks are bouncing back after some tension was eased on overnight markets, with Chinese shares leading the way. The backdrop of an expected very bearish Federal Reserve as the Jackson Hole conference gets underway is starting to clear up as not that threatening at all, although bond markets have continued to selloff. The USD is also losing ground against Euro and Pound Sterling with the former climbing back above parity. Meanwhile oil prices are edging higher on supply problems with Brent just above the $100USD per barrel level while gold is also trying to clawback its losses with a break through above the $1750USD per ounce level that is gaining traction:
Mainland Chinese share markets started steady and built some gains towards the closing session, but have eased off with the Shanghai Composite only up 0.2% to 3215 points while the Hang Seng Index finally found some buyers to push more than 1.5% higher yet still below the 20,000 point level at 19565 points. Japanese stock markets are also lifting with the Nikkei 225 closing nearly 0.6% higher but still below the key 29000 point level at 28479 points. Meanwhile the USDJPY pair remains overextended and in a pause mode as it holds just above short term support at the mid 136 level:
Australian stocks were also in a buying mood today with the ASX200 closing more than 0.7% higher, finishing above the 7000 point level at 7048. The Australian dollar is also making a comeback with a new daily high, currently at the mid 69 cent level against USD after a fake breakout previously – can this one stick:
Eurostoxx and US futures are lifting slightly as we head into the London session, with the S&P500 four hourly futures chart showing price action wanting to get out of its steep retracement below trailing ATR support, but it may struggle to get back to the 4200 level from here:
The economic calendar is packed tonight with the start of the Jackson Hole conference, plus German IFO survey and GDP results, plus the same for US 2Q GDP estimates.