Global stock markets are mostly bullish, with Japanese indexes and the NASDAQ 100 firmly pushing to new long-term highs.
- Japanese shares rise strongly, with bulls firmly in control. TOPIX hit a new 33-year high the Nikkei 225 index it will close again today at a new 18-month high. The Japanese stock market is currently outperforming most other stock markets. The bullish run is driven by strong fundamentals, Japanese companies and banks posting record profits and bullish sentiment fueled by bullish momentum. Trend traders may find it attractive to be long the Japanese stock market right now, as well as other major indices breaking strongly to new highs such as NASDAQ 100.
- Hopes for a compromise on the US debt ceiling have risen, bolstered by comments from President Biden yesterday. This puts a brake on the growth of the stock market.
- In the forex market, the US dollar continues its recent gains after a strong reversal against the trend a few days ago. Action so far today has been dominated by weakness in the Australian dollar and strength in the New Zealand dollar. The long-term bearish trend in the US dollar remains technically valid, although the strength of the current retracement suggests that it is likely to persist for some time. However, trend traders may still be looking for long trades EUR/USD and GBP/USD currency pairs.
- A slow bullish trend in Gold remains technically valid, barely, despite the fact that it closed below the very large $2,000 round again yesterday, following its decline from a high near the all-time high of $2,070 reached two weeks ago. A daily close below $1,975 would be a bearish sign, while a close below the $1,917 support level would be even more bearish.
- Some soft commodities have made new highs and are trending strongly, esp Sugar ETF Cane a Cocoa NIB ETF, both of which hit multi-year highs last week.
- The Australian unemployment data release came in worse than expected, with the rate unexpectedly rising from 3.5% to 3.7%. indicating a cooling of the Australian economy. This may be a factor in convincing the Reserve Bank of Australia not to raise rates at its next meeting.
- US jobless claims data will be released today.
- JPMorgan sees US Fed cutting rates in Q3 later this year as recession looms.