Risk markets are buying the rumour, selling the fact with stocks and undollars soaring higher while oil and the USD is slammed lower on the possibility of a “ceasefire” in the Middle East. Lost among this turmoil are the big deals happening in Europe between the EU, Canada and Greenland as the pivot away from the US economy and military industrial complex accelerates. The Australian dollar took back all of its lost ground to head back to the 65 cent level
Oil markets have shrunk fast with Brent crude now trading just above the $67USD per barrel level in a wild turnaround while gold is the odd one out of the undollars, flopping another $30 or so to get back down to the $3330USD per ounce level:
Mainland Chinese share markets are up sharply in afternoon trade as the Shanghai Composite lifts more than 1% to get back above the 3400 point level while the Hang Seng Index has gained nearly 1.6% to get above the 24000 point level. Meanwhile Japanese stock markets are joining in the fun with the Nikkei 225 surging 1% higher despite the higher Yen with the USDPY pair retracing right back down to the 145 level:
Australian stocks rebounded as well with the ASX200 closing 1% higher at 8474 points while the Australian dollar also came back to life, almost breaking through the 65 handle this afternoon:
S&P and Eurostoxx futures have soared higher on the “ceasefire” going into the London session with the S&P500 four hourly chart breaking right through the 6100 point level:
The economic calendar includes the latest German IFO survey but all eyes will be on Fed Chair Powell’s testimony to Congress tonight.
Great monologue here from Diego Luna – he has friends everywhere…