Risk sentiment soured slightly on Wall Street overnight due to the disappointing earnings on tech stocks, with the NASDAQ pulling back more than 2% but other stock markets are holding on to their gains while the USD remains under pressure. Euro is back above parity while the Aussie dollar almost got through the 65 cent level overnight. US bond markets saw another mild pullback with 10 year Treasury yields retreating to the 4% level as bond traders position for tonight’s ECB meeting. Meanwhile commodities are firming up due to the lower USD, with oil prices lifting as Brent crude finished just below the $96USD per barrel level again while gold consolidated to steady at the $1660USD per ounce level.
Looking at share markets in Asia from yesterday’s session where Chinese share markets launched higher after the previous stable session, with the Shanghai Composite almost closing above the 3000 point barrier with a 0.8% lift while the Hang Seng Index was up 2% at one stage before closing 1% higher at 15317 points. The daily chart shows how swift this decline has been, wiping out over a decade of returns – so far. Just below this level is the 2008 lows, which is where Chinese and other authorities will want to defend, but watch for the 15000 point level to come under threat next if a new session low is made:
Japanese stock markets are continuing their strong start to the trading week with the Nikkei 225 closing 0.7% higher to 27431 points. The daily price chart is showing a possible breakout brewing here under overhead resistance at the 27500 level with a very solid start to the trading week from Wall Street’s lead, although futures are indicating a flattish session ahead today as momentum pushes through to an overbought reading:
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