Global equities continue to look bullish, especially in Asia, where markets are ending the day up by an average of 0.6%.
Broadly bullish stock markets look set to remain that way, with MSCI's World Index Asian shares up by an average of 0.6%. It was a public holiday in Japan today, but the Korean KOSPI Composite is ending the day up by more than 2.5%, reaching a new all-time high price. In off-hours trading, major US indices look much more subdued.
There will be a release today of Swiss CPI data, which is expected to show a month-on-month contraction of 0.1%. A currency with deflation can be expected to be naturally strong.
There will be a release today of US ISM Manufacturing data.
Attention is shifting towards the US Supreme Court, which is expected to begin ruling this Wednesday on the legality of President Trump's tariffs which have been imposed this year. Interpretations of the US constitution differ on whether the President has the power to decree such tariffs. If the Supreme Court finds the tariffs were unlawful, which is unlikely, we can expect a lot of volatility in capital markets.
In the Forex market, it has been a very quiet Asian session. The Australian Dollar has been the strongest major currency since today's Tokyo open, while the Japanese Yen has been the weakest.
The USD/JPY currency pairremains in focus after triggering a long trade entry at most trend-following funds three weeks ago and is looking more bullish as it trades above ¥154.00 very close to a new 6-month high price. Trend traders will want to be long here, and momentum traders will be looking for a bullish breakout.
- Soybean futures
have made a new bullish breakout to a 4-month high price, which is attracting some trend followers to trade it long. Soybeans got a boost last week when China agreed to resume purchases of US soybeans. If Soybean futures are too big and expensive for you, you could consider the more accessible and affordable ETF SOYB if you want exposure.