Wall Street finished dead flat overnight as earnings concerns mounted while European shares rebounded on a poorer than expected ZEW sentiment survey. The Australian dollar lifted on the release of the RBA minutes yesterday, maintaining a somewhat strong position just above the 67 handle. 10 year US Treasury yields were basically unchanged and remain just above the 3.5% level while the commodity complex still doesn’t like the stronger USD with oil prices pulling back from their recent highs as Brent crude finished just below the $85USD per barrel level. Gold was able to rebound slightly above the $2000USD per ounce level after a brief blip below.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets are trying to lift from a mixed session into the close, with the Shanghai Composite up just 0.2% to almost get through the 3400 point barrier at 3393 points while the Hang Seng pulled back somewhat, down 0.6% to finish at 20650 points. The daily chart is showing resistance building again at the 20500 point level with daily momentum trying to get into a clear overbought mode, as price action wants to breakfree of the start of March position. The start of year correction may be over but still requires a substantial lift above the current level before calling it a new rally:
Japanese stock markets have found some lost confidence with the Nikkei 225 closing more than 0.5% higher on a weaker Yen at 28662 points. The previous bounceback looked like a bull trap, but this may have more traction, taking out the March highs with futures indicating another strong lift on the open. Daily momentum is now getting back into overbought conditions with support building at the 27000 point area:
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