US stocks were able to put in a late surge on Wall Street on Friday night but it still wasn’t able to clawback a swathe of losses last week – the worst for the year. So far…European shares played catchup as well with Fed expectations flipped as everyone awaits this week’s US CPI print. The USD remained broadly strong against the majors with Euro pushed down to the 1.06 handle, while the Australian dollar diced again with support at the 69 cent level. 10 year Treasury yields lifted higher again on Fed expectations, pushing well above the 3.7% level while the commodity complex saw oil prices lift higher as Russia announced a cutback in production with Brent crude lifting well above the $86USD per barrel level. Gold was unable to get out of its recent funk, remaining depressed at the $1865USD per ounce level.
Looking at share markets in Asia from Friday’s session where mainland Chinese share markets are taking a diver post the inflation print with the Shanghai Composite down 0.3% to 3260 points while the Hang Seng followed with an even bigger retracement, down 2% to 21190 points. The daily chart had being showing a nice breakout with daily momentum well overbought but unable to breach the 23000 point level. Price action has now rolled over through ATR support with momentum crossing into negative territory but a possible corrective phase has not yet eventuated with support clearly evident at the 20000 point level:
Japanese stock markets were the odds one out, lifting slightly with the Nikkei 225 moving 0.3% higher to 27670 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 remains unable to clear the 27500 point level. Daily momentum has reverted out of overbought mode and could be suggesting a slide back below the low moving average next but support is holding here:
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