Asian share markets are generally performing very well as risk moves to buy up everything not marked with a USD sign, while local shares continue to underperform. Volatility in commodity markets is abating following the Trump regime’s “special military operation” into Venezuela with the USD seeing a strong reversal against the majors, particularly Euro as it moves well above the 1.17 handle while the Australian dollar surges to new monthly high to get back above the 67 cent level.
Oil markets remain unstable but are seeing more support build across both markers with Brent crude just below the $62USD per barrel level while gold has continued its start of year rally to well above the $4400USD per ounce level after a volatile Xmas trading period:
Mainland Chinese share markets are seeing more bidding with the Shanghai Composite up more than 1% to climb well above 4000 points while the Hang Seng Index has finally caught up, surging more than 1.6% higher to 26815 points. Japanese stock markets are also blasting off into the stratosphere with the Nikkei 225 gaining another 1% to climb above 52000 points with the USDPY pair settling down at just above the 156 level:
Australian stocks fell back unlike the rest of Asia with the ASX200 falling 0.4% to 8690 points while the Australian dollar is seeing more upside pressure as USD reveals structural weakness as it makes a new monthly high above the 67 cent level:
S&P and Eurostoxx futures are wanting to move higher after the post Xmas/NY low volatility period with the S&P500 four hourly chart showing support building well above the 6800 key level as momentum switches from oversold to almost overbought:
The economic calendar includes the latest German and French inflation figures and the API US crude oil stocks number – which just went up a few trillion barrels I guess?