Strong risk appetite carries through from US to Asian markets after Democrat's regain of majority in House after the mid-term election. Nikkei closed up strongly by 401.12 pts or 1.82% at 22486.92. Hong Kong HSI is up 0.76% at the time of writing. Singapore Strait Times is up 0.90%. But China Shanghai SSE is up only 0.07%. Probably, Chinese investor know that there won't be any material change in China policy of the US. Overnight, DOWN closed up 545.29 pts or 2.13% at 26180.30. S&P 500 gained 2.12% while NASDAQ rose 2.64%. Treasury yields were steady with 10 year yield closed down -0.001% at 3.213. In the currency markets, strong risk appetite continue to support Australian and New Zealand Dollar. Canadian Dollar doesn't join the ride as WTI oil continues it's free fall to below 62. Yen is naturally the weakest one with current market sentiments. Dollar is currently the second weakest for today. But it should be noted that the greenback has already pared back much of this week's loss against Euro and Swiss Franc. And the post election selloff in Dollar hasn't accelerated so far. Technically, Euro's weakness is actually worth a mention. Both EUR/GBP and EUR/AUD are starting to gather downside momentum again. EUR/JPY is struggling to take out 130.20 key near term resistance for now. Even EUR/CHF is losing momentum ahead of 1.1501 resistance. A break of 1.1353 minor support in EUR/USD will switch the fortune between these two currencies. |
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