Asian stock markets are reacting well to the overnight moves following the Federal Reserves latest meeting where post the 25 basis point rise, dovish talk about future rate cuts lifted risk spirits everywhere. Currency markets are holding on to their gains against USD with Euro pushing up through the 1.10 handle while the Australian dollar is likewise bullish above the 71 cent level. Meanwhile oil prices are going nowhere as the OPEC+ meeting gets underway with Brent crude about to cross below the $83USD per barrel level as gold also consolidates its big move above the $1950USD per ounce level:
Mainland Chinese share markets are again a bit listless with the Shanghai Composite barely up in afternoon trade at 3288 points while the Hang Seng is doing somewhat better, up 0.4% to remain above the 22000 point level. Japanese stock markets are finally seeing some upside action but its a bit muted, with the Nikkei 225 closing just 0.2% higher at 27417 points with the USDJPY pair extending its losses from overnight, pushed below the mid 128 level:
Australian stocks have given a small push higher, with the ASX200 closing up 0.2% to extend its gains above the 7500 point level. The Australian dollar is basically unchanged after its post-Fed surge overnight above the 71 handle with short term momentum indicating a slightly overbought status as price action is still above the recent weekly highs:
Eurostoxx and US futures are holding on to their respective gains from last night with the S&P500 four hourly chart showing price action lifting well above the psychologically important 4000 point zone, following the Fed’s dovish moves overnight. Short term momentum is now extremely overbought and could retrace from here:
The economic calendar remains packed with German balance of trade figures, then the BOE and ECB meetings followed by US factory orders.