Asian stock markets are in the main enjoying a solid finish to a volatile trading week, following the strong leads from overnight markets but not at similar relative levels as it looks like the worst of the recent financial contagions in poorly regulated US banks is behind us – for now. The Australian dollar has surged on the risk on mood, following other undollars to break above the 67 cent level while the recent retracement in bond yields on 2 and 10 year Treasuries is still dominating bond markets. Meanwhile, oil prices have lifted marginally but Brent crude remains quite depressed currently just above the $75USD per barrel level as gold looks set to break out above its current short term high, as bids build just below the $1930USD per ounce level:
Mainland Chinese share markets are climbing sharply going into the close, with the Shanghai Composite up more than 1.5% to almost get through the 3300 point barrier at 3278 points while the Hang Seng has lifted a near equal amount, currently up 1.8% at 19560 points. Japanese stock markets are finally finding some confidence with the Nikkei 225 about to close 0.5% higher at 27222 points while the USDJPY pair has failed to translate its recent bounce into anything sustainable as it retreats back to the 133 level:
Australian stocks started well enough at the open with a nice bounce before nervous traders at lunch sold the ASX200 down before recovering somewhat in afternoon trade, currently just 0.4% higher and still below the 7000 point level at 6993 points. The Australian dollar has had no such hesitation, climbing alongside other undollars with a big push above the 67 cent level to make a new weekly high here as risk appetite starts to cut through recent volatility:
Eurostoxx and US futures are looking a lot healthier here with he S&P500 four hourly chart showing price action bursting out above overhead resistance after clearing a point of control at the 3950 point level. The next psychological level to clear is obviously 4000 points, putting this weeks “insert financial chaotic event” behind us and waiting for the next one:
The economic calendar ends the trading week with Euro-wide core inflation then US industrial production and consumer sentiment numbers.