Investors Cheer Possible Solution In Syria

Markets in Asia extended yesterday’s gains as a possible solution that does not involve force, was brought to the table by Russia’s Vladimir Putin. Also more good data releases from China helped sentiment.

Economic data from the world’s second largest economy, is being watched to show signs of more stabilization. Industrial output, retail sales, as well as other data will be released at 13:30 Hong Kong time today.

STOCKS
The Nikkei 225 has hit a new one month high as it is now trading above the 14,300 level. Hopes of new economic stimulus pushed stocks higher. China’s benchmark, the Shanghai Composite, lost gains after rising above 2,218 which was a new three month high. The index closed flat for the day. The Australian S&P/ASX has hit a new one week high and the Kospi hit a brand new three month high.

U.S. markets started the week with a bang. The Dow jones had its best day in over two months as Syrian tension waned on a proposed plan by Putin for Syria to surrender all chemical weapons to the U.S. and Russia to be destroyed.

The DJIA jumped over 140 points to close above 15,000 at 15,063.12. The S&P 500 closed up 16 points, 1 percent, at 1,671.71. The tech heavy NASDAQ Composite closed at its highest level since November 2000 at 3,706.16.

In September, which is still early, the Dow has rallied over 1.5 percent and the NASDAQ and S&P have each recovered over 2 percent.

CURRENCIES
The EUR/USD (1.3264) continued to recover from last week’s low at 1.3100. We are not looking to test the key resistance level at 1.3300. Please see the below chart.

The USD/JPY (99.61) moved a smidgen lower but is still bullish to test 100.00. A break above that can test 110 and higher. The GBP/USD (1.57) is also benefiting from a weaker dollar as it looks to test 1.5900. The AUD/USD (0.9264) also moved higher, not as much as the other pairs against the dollar, but is still rising steadily.

COMMODITIES
Let us take a broad look at the commodities markets this morning. WTI Crude (108.37) fell 1.55 percent as Middle East tensions abated. Gold (1379.00) is trading rather steady and flat. Copper (3.26) has moved up half a percent in trading today.

Looking at agricultural commodities, corn has fallen over 2.8 percent and Soybeans dropped over 2 percent. As far as agricultural are concerned, frozen orange was the biggest loser down over three percent.

TODAY’S OUTLOOK
Investors will be eying China’s industrial output and retail sales numbers due out at 13:30 Hong Kong time today. Good numbers will indicate a continuing stabilization in their economy and exporter and emerging markets will like that a lot.