Risk markets are still unsettled following Fed Chair Powell’s continued testimony to Congress overnight, this time with Bitcoin and cryptos taking the hit while Wall Street was able to stabilise somewhat after selling off sharply. Meanwhile the USD remains strong against everything undollar with the Australian dollar still depressed at a five month low at the 66 cent level. 10 year US Treasury yields remain below the 4% level but the yield curve continues to sharply invert as 2 year yields head above 5% while the commodity complex saw oil prices pushed lower again as Brent crude crossed below the $82USD per barrel level while gold remains depressed at the $1810USD per ounce level.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets were again dropping going into the close before rebounding as the Shanghai Composite finished nearly dead flat but still below the 3300 point barrier at 3283 points while the Hang Seng was slammed more than 2% lower to almost cross below the 20000 points level. The daily chart is showing a new rollover underway as price action is still well below previous ATR support as momentum looks set to return to oversold territory as it fails to set up a swing play:
Japanese stock markets were also on the go, but on the up this time extending last week’s surge with the Nikkei 225 up 0.5% to 28444 points. This big bounceback looks like having legs as a cheaper Yen provides a substantial tailwind with futures indicating a nice lift on the open as Wall Street stabilised overnight. Daily momentum is well into the overbought zone with support clearly evident at the 27000 point area which has been robustly defended:
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