Last night saw the release of the latest Eurozone inflation numbers and while a little hotter than expected, Euro finished lower than USD and both European shares and Wall Street rallied. The Australian dollar remained on the floor at just above the 67 cent level while US Treasury yields lifted higher yet again with the 10 year pushing through 4.06% on the back of the ECB policy minutes. The commodity complex saw oil prices lift slightly again with Brent crude remaining above the $84USD per barrel level while gold was relatively steady as it climbs out of its depressed funk, holding just shy of the $1830USD per ounce level.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets are having a breather with the Shanghai Composite down slightly but still above the 3300 point barrier at 3310 points while the Hang Seng has taken some heat out after the big surge in the previous session by falling back around 0.9% but still over the 20000 point level at 20429 points. The daily chart is showing this rollover going from slowing down to possibly reversing although price action is still well below previous ATR support as momentum remains in oversold territory. Watch now for this bounce off support at the 20000 point level to be a bit more sustainable:
Japanese stock markets were mixed again with the Nikkei 225 down slightly to 27498 points. A slight bounceback is still in effect after last week’s rollover with daily momentum getting back into the positive zone with support clearly evident at the 27000 point area. Futures now have a clearer picture with a stronger overnight lead which should lead to a better finish to the trading week today with the previous daily high around the 27700 point are the target:
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