Continued strong earnings kept Wall Street elevated overnight with European stocks pulled along for the ride with the USD holding against most currencies after its recent reversal, although Yen continues to sell off. US bond markets were more sanguine although UK gilts rose again on more Truss shenanigans, with 10 year Treasury yields hovering above the 4% level. Meanwhile commodities were mixed, with oil prices pulling back as Brent crude retraced down to the $90USD per barrel level while gold remains under a lot of pressure despite more positive moves in other undollars, still trading at the $1650USD per ounce level.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets were basically unchanged as they absorb the latest Communist Magic the Gathering event and the non-existent GDP prints, with the Shanghai Composite down slightly and just holding above the 3080 point level while the Hang Seng Index did much better, up nearly 2% but still below the 17000 point level, currently at 16914 points. The daily futures chart however is still showing a deep bear market in place, although there is some price deceleration evident here around the 16500 point mid level. As I said last week following the failure of the recent dead cat bounce, the subsequent break below the 17000 point level is likely to accelerate the selloff, but that could change if any price action breaks above the high moving average:
Japanese stock markets also moved higher with the Nikkei 225 closing up 1.4% to 27156 points. The daily price chart shows a possible breakout brewing here under overhead resistance at the 27500 level in this second bounce of the dead cat that could have more traction as Yen depreciates sharply against USD. Futures are indicating a better start for today’s session as daily momentum pushes through the positive zone:
