Friday night saw Wall Street finally claw back some confidence amid all the mid-week hawkish Fed talk with European shares also pushing past recent macro ructions across the continent. In currency land, the USD was able to lift higher against the individual major currencies with Euro pushed down to the 1.03 level as the Australian dollar also lost ground to retrace below the 67 cent level. US bond markets saw more yield inversion with 10 year Treasury yields lifting slightly back above the 3.7% level while commodities were under pressure on all sides with Brent crude dropping below the $87USD per barrel level as gold fell back on the USD resurgence, maintaining its current uptrend but drifting down to the $1750USD per ounce level.
Looking at share markets in Asia from Friday’s session where mainland Chinese share markets struggled to find any traction with the Shanghai Composite down nearly 0.6% at 3097 points while the Hang Seng Index tried to regain lost ground, but eventually closed 0.3% lower just below 18000 points. The daily chart is finally showing a slowdown after having gained nearly 4000 points since testing the 2008 lows. Its pretty obvious that daily momentum was getting ahead of itself before reaching the magical 20000 point level so watch this retracement to test the recent daily lows below the 18000 point level:
Japanese stock markets again put in scratch sessions with the Nikkei 225 closing just 0.1% lower at 27899 points. The daily price chart was showing a breakout brewing as overhead resistance at the 27500 level is cleared but more wobbles are appearing here as the too strong Yen and lack of upside action on Wall Street hampers buying confidence. A potential pullback is building here below the trend line as price action stalls amid although daily momentum remains overbought. Support needs to hold at the 27500 point level:
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