Asian share markets have rebounded strongly on the TACO trade as the Trump regime looks like folding yet again over its tariff threats on China while the USD tries to take back a lot of lost ground against the majors but is only barely making headway. The latest Chinese GDP print didn’t scare the Australian dollar too much as it flipped back above the 65 cent level.
Oil markets are still depressed with Brent crude holding around the $60-61USD per barrel level while gold had some major intrasession volatility on Friday night but managed a calmer response in today’s Asian session as it holds at the $4260USD per ounce level:
Mainland Chinese share markets are bouncing back from their Friday falls with the Shanghai Composite up 0.8% at 3865 points while the Hang Seng Index is up more than 2% at 25854 points. Japanese stock markets are also in rebound TACO mode with the Nikkei 225 looking to close more nearly 3% higher at 48896 points with the USDPY pair staying above the 150 level:
Australian stocks were the worst performers relatively speaking, with the ASX200 closing 0.4% higher at 9028 points while the Australian dollar has steadied somewhat above the 65 cent level against USD but is failing to make new highs:
S&P and Eurostoxx futures are heading higher as we head into the London session with the S&P500 four hourly chart showing the market wanting to get back on track after the slump from the previous Friday session, as the TACO trade rebounds:
The economic calendar starts the trading week with some US and EU sovereign bond auctions and not much else.