Wall Street bounced back on a lower than expected quarterly GDP print that saw USD lose some ground and inflation expectations remain somewhat unchanged. European stocks came along for the ride and it looks like Asian bourses should get a boost in the final session of the trading week. The Australian dollar is maintaining support at the 66 cent level as other major currencies oscillate with 10 year US Treasury yields rising through to the 3.5% level. Meanwhile oil prices are still depressed with Brent crude still at its new monthly low at the $78USD per barrel level as gold struggled to find direction, still unable to get back above the $2000USD per ounce level to retreat to $1987 per ounce.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets where lifted again going into the close where the Shanghai Composite lifted some 0.6% to just below the 3300 point barrier at 3287 points while the Hang Seng had a similar lift higher to gain 0.4% but still closing shy of the 20000 level, finishing at 19840 points. The daily chart was showing resistance building at the 20500 point level before this recent rollover with daily momentum unable to get into a clear overbought mode, as price action returns to the start of year correction phase. While this small bounce may have legs, watch for any break below the 19000 point level as an ominous sign:
Japanese stock markets had steady sessions with the Nikkei 225 eventually finishing some 0.1% higher at 28457 points. Futures are indicating a strong lift on the open in line with Wall Street’s big bounceback with a bullish engulfing candle suggesting a new weekly high maybe on the cards. Daily momentum is still positive but no longer in its overbought condition as price action tested support at the low moving average area but resistance remains firm just below the 29000 point level:
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