Market Brief
China’s stock market value exceeded that of Japan’s yesterday as the $585Bn stimulus package and scrapping of lending restrictions for banks helped trigger the revival and boost share prices. However the strong GDP figure reported by the National Bureau of Statistics was the focus in this morning’s news as China is largely seen to be the main catalyst in the world’s recovery from the worst recession in living memory. Q2 GDP tipped the scales at 7.9% - exceeding a 7.8% median forecast of 20 economists. This said, NBS Spokesman Li Xiaochao said China still faced difficulty in job creation and saw an eventual slowing of the current euphoria in the markets spurred on by the economic revival package.
On a more global note, the flurry of positive data out of the U.S brought on a general rally in risk appetite, we saw a general slump in the Yen and Dollar – the main refuge currencies – that benefit from risk aversion. EURUSD culminated at 1.4134 – failing to break the current broad 1.3750 – 1.4150 range. USDJPY was met with the same dynamic, the Yen giving way to the comparatively risk prone Greenback. Both these pairs seem to have exhausted their immediate upward momentum; retracements to mid range are to be expected.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 9344.16 | 0.81 |
| Hang Seng Index | 18395.81 | 0.75 |
| Shanghai Index | 3183.74 | -0.15 |
| FTSE 100 Index | 4346.48 | 0 |
| DAX Index | 4931.81 | 0.07 |
| DJIA futures | 8519 | -0.28 |
| Nasdaq futures | 1492.5 | -0.32 |
| World Markets | Current Level | % Change |
| Gold | 937 | -0.23 |
| Silver | 13.275 | 0 |
| VIX | 25.89 | 3.48 |
| Crude wti | 61.65 | 0.18 |
| USD Index | 79.472 | 0.13 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Initial Jobless Claims (JUL) | 555K | 565K | US / 12:30 |
| Continuing Claims | 6850K | 6883K | US / 12:30 |
| US Net Long-Term TIC Flows | $16.5B | $11.2B | US / 13:00 |
| Philadelphia Fed (Jul) | -5 | -2.2 | US / 14:00 |
Currency Tech
AUDUSD
R 2: 0.8155
R 1: 0.8035
CURRENT: 0.7974
S 1: 0.7700
S 2: 0.7630
EURJPY
R 2: 134.80
R 1: 132.82
CURRENT: 131.87
S 1: 127.82
S 2: 126.98
AUDJPY
R 2: 76.022
R 1: 75.205
CURRENT: 74.801
S 1: 73.204
S 2: 71.476
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
