It was the Europeans and Brexiteers turn overnight with the ECB and BOE hiking rates at their respective meetings, a day after the US Federal Reserve raised rates with European shares lifting on softer language. Wall Street meanwhile lifted on tech stock earnings while the USD pulled back some of the previous losses as some undollars went too far too fast, with Euro back down to the 1.08 handle. 10 year Treasury yields pulled back to a two week low to be below the 3.4% level while the commodity complex saw oil prices retrace again, with Brent crude finishing just above the $82USD per barrel level. Gold was unable to hold on to its new monthly high with a sharp retracement back down to the $1910USD per ounce level in a volatile session.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets were a bit listless with the Shanghai Composite closing up a handful of points to 3288 while the Hang Seng was doing somewhat better, up 0.4% at one stage before reversing at the close to finish 0.5% lower at 21958 points. 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 yet be far to reach. Keep an eye on ATR support next:
Japanese stock markets finally saw some upside action but it was a bit muted, with the Nikkei 225 closing just 0.2% higher at 27420 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 as resistance builds at the 27500 point level. 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 tightening up here:
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