A hectic trading week culminated in the April US jobs figures which surprised to the upside, but came with further past revisions that paint a picture of a well moderating jobs market, given more wait to the Fed’s intention on pausing further rate rises. This lifted risk spirits across the complex with Wall Street rally nearly 2% across the board, lifting European shares with it. The USD fell slightly back against Euro while the Australian dollar was the strongest, now lifting well above the 67 cent level. Meanwhile 10 year US Treasury yields pushed up alongside shorter dated yields to get back to the 3.4% level as oil prices rebounded after a bad week with Brent crude getting back above the $75USD per barrel. Gold paused its breakout but remained above the $2000USD per ounce level, closing with a new weekly high at the $2020 level.
Looking at share markets in Asia from Friday’s session where Chinese share markets stumbled into the last trading session of the week with the Shanghai Composite down 0.5% to 3334 points while the Hang Seng gained another 0.5% to close just above 20000 points. After also closing shy of the 20000 level in the previous week, the daily chart is still showing resistance building slightly above at the 20500 point level as price action wants to return to the start of year correction phase. It looks like the 19000 point level is proving an anchor point in recent months that price action continues to draw down to but support is building here:
Japanese stock markets were closed for most of the week with Nikkei 225 futures indicating a strong revival once they reopen this week. Overall the trend remains up with some steam taken out before the holidays as price action was almost testing the low moving average area, but it looks like overall risk sentiment will not threaten trailing ATR support at 28000 points:
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