The bounceback on risk markets continued overnight although commodities and bonds fell back slightly as the USD lost some ground as we head into the Jackson Hole central bank conference today. Euro briefly got back above parity but was pushed back below while the Australian dollar is holding just below the 70 cent level in a surprise lift. Bond markets saw roundtripping and minor falls in yields with 10 year Treasuries pushed down to the 3% level while interest rate futures lifted again to a predicted 65bps rise at the next Fed meeting. Crude oil took back its recent gains with Brent crude retracing back to the $100USD per barrel level while gold stood out with another new daily high above the $1850USD per ounce level.
Looking at share markets in Asia from yesterday’s session, where Chinese share markets started steady and built some gains towards the closing session, with the Shanghai Composite up nearly 1% to 3246 points while the Hang Seng Index finally found some buyers – and then some – to push more than 3% higher to almost back above the 20,000 point level, closing at 19965 points. The daily chart was showing considerable overhead resistance and daily momentum readings surging in oversold mode as the moving average channel accelerated lower without any upside pressure. This one off move takes out at least a week of losses as price bounces off the May lows so watch for a potential follow through above the 20000 point level today:
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. The daily chart is showing a mild dip that has been nearly filled and likely to continue higher as momentum never went into negative mode as part of a weak swing short play down. Trailing ATR support at the 28000 point level remains firm with internal buying support building so watch for a move towards the 29000 point level to finish the trading week:
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