Wall Street was flat overnight after an absence of good economic news and further Fed talk kept interest rate expectations high, while European shares continued to lift. 10 year US Treasury yields almost pushed through the 4% level as traders await the Powell testimony with currency markets also diverging in fortune as Euro heads higher while commodity currencies like the Aussie remain under the pump. Today’s RBA meeting could change the fortunes of the Pacific Peso however. The commodity complex saw oil prices lift higher again with Brent crude making a new weekly high, pushing through the $86USD per barrel level while gold was pulled back from its new monthly high, retracing back below the $1850USD per ounce level.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets dropped slightly going into the close with the Shanghai Composite down 0.2% but still above the 3300 point barrier while the Hang Seng has flat lined and finished about 0.2% higher at 20603 points. The daily chart is showing this rollover now possibly reversing although price action is still well below previous ATR support as momentum gets out of oversold territory to set up a swing play. Watch now for this bounce off support at the 20000 point level to be a bit more sustainable:
Japanese stock markets are still lifting from last week’s surge with the Nikkei 225 up more than 1% to 28237 points. A big bounceback is in effect after last week’s rollover with daily momentum getting back into the overbought zone with support clearly evident at the 27000 point area. Futures now have a clearer picture with a stronger lead which should lead to a solid start to the trading week with the previous daily high around the 27700 point the support area to defend:
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