Asian markets trade higher on Wednesday as Chinese markets open after the holidays while Nikkei is still closed. Sentiment has improved after President Trump said that he wants to reopen the economy but also noted that some people would be affected. Italy, Spain and France also gradually open some businesses.
Wall Street ended higher yesterday but lost some of the gains before the closing bell. Investors ignored the resurface of trade tensions between China and the USA over the handling of the coronavirus outbreak that might also.
Fed’s Vice Chairman Clarida said that more monetary and fiscal policy support would be need from the central bank and government to support the coronavirus battered economy.
The Hang Seng Index is 1.34% higher at 24,187. The Shanghai Composite index ended 0.63% higher at 2,878. The Aussie ASX 200 index trading lower, after three consecutive days of gains, giving up 1.03% at 5,407.
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ASX 200 Lower Despite Better Retail Sales
ASX 200 is 0.42% lower at 5,384 for the first time in the last three trading sessions. Investors taking some profits off the table despite the retail sales rose by 8.5%, beating the expectations of 8%. The recovery in crude oil and base metals while the reopening of the businesses boosted ASX 200 for the last two weeks.
On the technical side, the index rejected at 38.2% Fibo retracement as the technical picture remains bearish.
On the downside, first support for ASX 200 stands at 5,345 the daily low. If the selling pressure continues the next support area is at 5,176 the low from May 1. Next critical support to watch on the downside will be met at 5,102 the low from April 22.
On the flipside, first resistance stands at 5,408 the daily top. More offers might emerge at 5,473 the 50-day moving average. On a bullish breakout, buyers will be looking for an extension to the high from May 1 at 5,530.