Chinese stimulus causes stocks to rock

Frank Walbaum FX Strategies.Asia

Important news for the day

Fri, 27th, 14:30 CET US Core PCE price index.

China rally

Stock markets globally continue to show positive sentiment and rise further. Markets look bullish since the stimulus package from China seems the main driver behind the positive move. However, headwinds might come from the ECB with statements from Isabel Schnabel saying that she is concerned about the economic outlook in the Eurozone. In general thought the German DAX index continues to move higher after showing strong gains yesterday. Also cyrptos are able to move higher led by the positive sentiment in general.

Market talk

The Dollar has resumed trading stronger this morning but seems to lose some steam for now. Precious metals might be influenced and continue with slight losses as in particular the Silver market is heading slightly lower. Worth noting that oil seems to run to the downside as well, whereas the weekly chart is still trading on top of the current wide support zone. The Japanese Yen is coming back finally after losses last week. Potentially time to celebrate with a Toki Whisky from the Suntory group.

Tendencies in the markets

Equities strong (be careful about a potential correction), USD stronger, cryptos positive, oil weak, metals sideways, JPY weaker.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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