Good morning. Well with the US closed yesterday it was pretty slow as generally expected. The 6803 long took on that little dip in the morning and fortunately we just had a slow climb for the rest of the day, and overnight to around 6830 currently. With the bottom of the 10 day Bianca at 6809, and today begin the first day back for the US after the summer period, we will most likely maintain that bull today, BUT the FTSE is nearing resistance at 6847 so maybe a dip and rise day.
Asia Overnight from Bloomberg
Asian stocks outside Japan dropped as South Korean manufacturers dragged the gauge lower. The Topix index rallied in Tokyo as the yen weakened before Prime Minister Shinzo Abe announces a new cabinet tomorrow.
The MSCI Asia Pacific Excluding Japan Index dropped 0.6 percent to 509.78 as of 12:33 p.m. in Hong Kong, set for its lowest close since Aug. 18. The Topix rose toward a seven-month high as the yen touched the weakest against the greenback since January. A measure of Asian equities that includes Japan traded yesterday at 13.7 times estimated earnings, after touching this year’s peak of 13.8 times last week.
“Shares are no longer dirt cheap but they’re not expensive either,” Shane Oliver, a Sydney-based global strategist at AMP Capital Investors Ltd., which oversees about $131 billion, said on Bloomberg Television. “The broad environment for shares remains favorable. Valuations look OK and monetary conditions are very easy.”
South Korea’s Kospi index slipped 0.8 percent. Taiwan’s Taiex index decreased 1 percent. New Zealand’s NZX 50 Index slid was little changed. Hong Kong’s Hang Seng Index dropped 0.6 percent. China’s Shanghai Composite Index and Singapore’s Straits Times Index gained 0.3 percent.
RBA Decision
Australia’s S&P/ASX 200 Index added 0.3 percent. The nation’s central bank maintained borrowing costs at a record-low to support growth and spur hiring in an economy where unemployment is at a 12-year high. The decision was predicted by all 31 economists surveyed by Bloomberg.
Japan’s Topix jumped 1.2 percent, heading for its highest close since Jan. 22. The yen touched 104.87 per dollar. Shares also gained amid speculation Yasuhisa Shiozaki, a politician in favor of pension reform, will be appointed health minister.
“If Shiozaki becomes the health minister, investors will think his appointment will lead to reforms at GPIF and other public pension funds,” said Masashi Akutsu, a strategist at SMBC Nikko Securities Inc. “It’s favorable for the market.”
Ukraine warned of an escalating conflict in its easternmost regions as a rebel leader said talks this week may include negotiations for a truce. The country’s military will take on Russia’s “full-scale invasion,” Defense Minister Valeriy Geletey said on Facebook yesterday, a shift away from the government’s earlier communication that focused on an offensive against insurgents.
Futures on the Standard & Poor’s 500 Index added 0.1 percent from their last close on Aug. 29. U.S. financial markets were shut yesterday for a holiday.
FTSE Outlook
For today, we are nearing the initial resistance at 6836 with 6847 after that. I expect that the bull run from the 6803 might stall a little around this area with a dip to the pivot at 6816 before the US drags things up again this afternoon. There is a pretty decent 30 minute rising channel, with resistance at the 6847, and the support at 6805, tallying the bottom of the 10 day Bianca at 6809, and we also have the 20 day Raff there. 10 day Raff isn’t far away either around 6797. Basically, there is some good support at around 6800 still but the bulls will need to break 6847 today. Not too much to say really, long at the pivot and 6810 areas, short at the 6847 area, possibly 6836 initially.