Friday night saw Wall Street break the trend and pull back slightly as other bourses finished a strong trading week. The USD remains on the ropes against almost all the undollars, with Euro hovering around the 1.10 handle while the Australian dollar remains under pressure as interest rate expectation battles continue. 10 year US Treasury yields lifted slightly to remain just below the the 3.5% level while the commodity complex is liking the weaker USD with oil prices holding at the recent highs as Brent crude finished just below the $87USD per barrel level while gold is holding on to its own highs for the year so far, with the shiny metal retracing to just above the $2000USD per ounce level.
Looking at share markets in Asia from Friday’s session where mainland Chinese share markets rallied going into the close, with the Shanghai Composite up nearly 0.7% to remain above the previous 3300 point barrier at 3338 points while the Hang Seng put on nearly 0.5% to close at at 20438 points. The daily chart is showing resistance building again at the 20500 point level with daily momentum not yet getting into overbought mode, as price action holds at the start of March position. The start of year correction may be over but requires a substantial lift above the current level before calling it a new rally:
Japanese stock markets however have been able to escape their recent double dip situation with a large close above the previous highs on Friday, with the Nikkei 225 finishing more than 1.2% higher at 28493 points. The previous bounceback looked like a bull trap, but this may have more traction, taking out the March highs with futures indicating another lift on the open despite the small retreat on Wall Street. Daily momentum is now getting back into overbought conditions with support building at the 27000 point area:
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