The risk complex continued to rise overnight following the big surge on Friday as the US mid term elections loom large in the background. The USD remains weak against the major currency pairs following the mixed NFP print with Euro actually pushing through to parity – but only just – while the Australian dollar stalled near its recent high below the 65 cent level. US bond markets saw more curve flattening with 10 year Treasury yields pushing through the 4.2% level while commodities remained solid on the lower USD with Brent crude almost back to the $99USD per barrel level while gold also kept at its Friday high near the $1700USD per ounce level.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets are pulling back ever so slightly after their recent sharp rebound with the Shanghai Composite putting in a scratch session, closing just 0.2% higher at 3077 points while the Hang Seng Index has surged again, up more than 2.6% to extend its gains above the 16000 point level. The daily chart is still showing a potential bottoming action here after almost testing the 2008 lows, as the 15000 point level remains the key area to watch for signs of support. The previous session bullish engulfing candle is setting up for a clearance of overhead trailing ATR resistance so we could be seeing a continuation of a melt up rally as the new trading week gets underway:
Japanese stock markets were playing catchup after a shaky finish on Friday with the Nikkei 225 closing 1.2% higher at 27527 points. The daily price chart is showing a possible breakout brewing under overhead resistance at the 27500 level with a better lead from Wall Street helping as confidence starts to build. Futures are indicating another good session this morning with momentum still quite positive and almost positive around resistance at the 27600 point level:
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