The latest FOMC minutes and ISM manufacturing survey didn’t materially impact US stocks or the USD but Wall Street did manage to put in a positive session for once, with European shares finding more solid returns in the wake of a better German inflation print and lower energy prices. Yen weakened against USD while the Australian dollar managed to hold above the 68 handle after it big lift in the Asian session yesterday. The action was in bond markets as US Treasury yields eased off sharply with the 10 year issue falling to a new weekly low at the 3.7% level while the commodity complex saw oil prices slump again as Brent crude fell below the $80USD per barrel level while gold held well above the $1850USD per ounce level.
Looking at share markets in Asia from yesterday’s session where Chinese share markets pulled back slightly going into the close with the Shanghai Composite up a handful of points to remain above the 3100 point level, closing 0.2% higher at 3123 points while the Hang Seng Index continued its strong bounce, up 3% to the 20733 point level. The daily chart continues to look quite boisterous here with a series of step ups since the nadir in October last year as daily momentum switches to extreme overbought mode. It looks like weekly support at the 19000 point level is quite firm as traders bet on a post zero-COVID economic liftoff:
Japanese stock markets reopened with the Nikkei 225 selling off, finishing down 1.4% to close at 25716 points. The steep appreciation in Yen may result if further selling as this market has been in decline since mid December, rolling over through to long term support at the 26000 point level with daily momentum still clearly oversold. So far support has held with futures indicating some indecision at this level as Yen weakens:
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