Wall Street worries dominated risk taking overnight with modest falls, particularly in tech stocks while European shares dithered sideways. The USD pulled back somewhat against the majors wit the Australian dollar spiking above the 67 handle after a sideways trend all week. 10 year US Treasury yields pulled back below the 3.5% level on continued weak domestic US data while the commodity complex fell in line with those concerns as oil prices pulled back sharply, with Brent crude down to just above the $80USD per barrel level. Gold was the odd one out, able to rebound and get back above the $2000USD per ounce level but it remains in a tenuous position amongst the other undollars.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets were again in the red but managed to fill the gap towards the close, with the Shanghai Composite down just 0.1% to remain below the 3400 point barrier at 3367 points while the Hang Seng also turned things around late with a small blip higher to 20396 points. The daily chart is showing resistance building stronger at the 20500 point level with daily momentum unable to get into a clear overbought mode, with price action and futures indicating a full rollover is probable. The start of year correction may be returning here as the inability to get a substantial lift above that 20500 point level looks like failing:
Japanese stock markets were the best in the region, but only relatively speaking, with the Nikkei 225 closing just 0.2% higher at 28657 points. The previous bounceback looked like a bull trap, but this still may have more traction, taking out the March highs although futures are indicating a slight pullback on the open. Daily momentum was getting back into overbought conditions with support building at the 27000 point area, but price action still looks quite toppy here:
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