Tech stocks dragged down Wall Street overnight with Alphabet the biggest loser as traders weigh up what is going to be a very busy trading week with a multitude of central bank meetings and the latest US unemployment data. This has seen USD continue to push back against the major currency pairs with Euro retracing below the 1.09 handle while the Australian dollar was unable to hold above the 71 cent level. US bond markets saw another small selloff with 10 year Treasury yields up slightly to a new three week high above the 3.5% level while the commodity complex saw oil prices pull back sharply in anticipation of the upcoming OPEC+ meeting as Brent crude finished down to the $84USD per barrel level. Gold pulled back from its recent weekly high to finish just above the $1920USD per ounce level.
Looking at share markets in Asia from yesterday’s session where Chinese share markets share markets have returned from the Lunar New Year holidays with the Shanghai Composite up 0.5% at one stage but fluttered that away to close 0.1% higher at 3262 points. Meanwhile the Hang Seng has slumped nearly 3% to fall back to the 22000 point level in what looks like a topping action. The daily chart had shown a clear breakout after building up a series of steps with daily momentum well overbought and ready for new highs but the 23000 point level maybe too far to reach as profit takers step in:
Japanese stock markets were treading water yet again, with the Nikkei 225 only moving 0.2% higher to 27433 points. After bottoming out at the 25000 point level the recent positive correlation performance with Wall Street was helping lift price action back to the November highs, but not yet above. Clearing daily ATR resistance and getting daily momentum back into overbought mode should set up a further move higher to the 28000 point level next, but price action is cooling down here with futures indicating a possible rollover:
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