Asian stock markets are putting on a stellar finish to the trading week as the risk complex threw caution to the wind overnight as the latest US CPI print came in pretty hot, but its all about chasing that bounce and forgetting about the next quarter of pain. The Australian dollar is trying to stabilise above the 63 cent level versus USD after its wild ride overnight while other major currencies are also trying to hold on to their recent gains. Oil prices are flat following the recent OPEC production cuts, with Brent crude stable above the $94USD per barrel level while gold is not making another new daily low here, but is still crushed below the $1700USD per ounce level, currently at $1668:
Mainland Chinese share markets are stonking it in with the Shanghai Composite up more than 1.5% at 3069 points, still holding above the 3000 point barrier while the Hang Seng Index finally got out of sell mode, moving nearly 4% higher to almost back above the 17000 point level, currently at 16942 points. Japanese stock markets are also moving sharply higher, with the Nikkei 225 closing up 3.3% to 27118 points, while the USDJPY pair is stable above the 147 level as USD proves too strong against any defensive Yen bid:
Australian stocks were the relative poor performers but still managed a very solid lift off, with the ASX200 finishing the trading week well above the 6700 point level, closing at 6756 points. The Australian dollar is really trying hard to get further above the 63 handle after recently making a new two year low and last night’s whiplash moves:
Eurostoxx and US futures are drifting higher as we head into the London session, with the S&P500 four hourly futures chart showing price action wanting to punch through the 3700 point level. Medium term and possibly psychological long term resistance at the 4000 point level might be a distant memory but the previous weekly high at the 3800 point level is definitely in sights if this one off reversal can maintain the momentum:
The economic calendar ends the week with US retail sales and Michigan consumer sentiment prints.