Equities ended another day on a happy note with the Dow Jones, S&P 500 and Nasdaq indices closing 1.05, 0.82 and 0.59 percent higher, respectively. The buoyancy was reflected in FX and commodity markets with AUD and NZD having surged in some cases over one percent with WTI clocking in 4.03 percent gains. The anti-risk Japanese Yen was hammered along with the haven-linked US Dollar and Treasury bonds.To get more news about WikiFX, you can visit wikifx news official website.
　　Market participants shrugged at unrest in the US, where struggling economic activity amid the Covid-19 pandemic has been hampered further by state-enforced curfews responding to looting and vandalism. This is against the backdrop of protests and riots following the killing of George Floyd by a police officer in Minneapolis.
　　Traders may be operating on the market-friendly narrative that easing lockdown measures will lead to a speedy recovery despite Depression-era high unemployment. This in turn is helping to push cycle-sensitive assets higher.
　　Wednesdays Asia-Pacific Trading Session
　　Wall Streets rosy session may ring into Asia and help support APAC stocks and growth-oriented currencies like the Australian and New Zealand Dollars. Higher-beta FX - particularly those tied to emerging market economies - may benefit from resilient risk appetite. Credit markets may continue to show signs of easing as spreads on credit default swaps on sovereign bond yields in Asia - apart from a few - continue to narrow.
　　With another relatively-light data docket, the primary focus will likely be another Australian-based event, only this time instead of the RBA - like yesterday - today will focus on Q1 GDP statistics. The commodity-exporter country has managed to avoid a recession for almost 30 years - even dodging one in 2008. However, the current geopolitical and economic terrain may now be too rough to traverse unscathed.
　　AUD/JPY Technical Analysis
　　In the past 24 hours, AUD/JPY has surged 2.30 percent, adding onto its remarkable 20 percent recovery after bottoming out at 62.41. The pair continues to climb above a steep uptrend and is coming close to retesting a multi-month resistance range between 75.925 and 76.320 where the pair had previously stalled. Cracking that ceiling opens the door to testing the lower tier of the 77.736-79.843 range.

A Societe Generale study of bear markets since 1870 showed that the current bear-market rally is a departure from history. Andrew Lapthorne, the firm's head of quant strategy, concluded that investors are taking an early victory lap for the economy even after accounting for trillions in stimulus spending. He expects the stock market to end the year roughly 7% lower than current levels. Click here for more BI Prime stories.To get more news about WikiFX, you can visit wikifx news official website.
　　April was the best month for stocks since 1987. But this stand-out performance is not being universally cheered on Wall Street. The S&P 500's 13% ascent last month can be traced back to its bottom on March 23 - the same day the Federal Reserve essentially pledged to do whatever it takes to support the economy during the coronavirus pandemic. Even with this stimulus in action, investors declared an early victory for an economy that must still crawl out of its worst contraction in many decades, according to Andrew Lapthorne, the head of quantitative strategy at Societe Generale. He drew this conclusion by studying a 150-year history of bear markets, defined as a 20% decline from recent highs. "Beware of the oddity in this bear rally," Lapthorne said in a recent note to clients.
　　He added: "With the fallout from the complete shutdown of economic life in terms of disruptions in supply chains and collapse of aggregate demand, as well as the uncertainty on the post-lockdown path to recovery, new market bottoms are possible, although the unprecedented massive policy response could provide the backstop to a worsening case of deflationary spiral."His study of bear markets since 1870 led him to conclude that the S&P 500 would finish the year at about 2,715, representing a 7% decline from its April close.Both the crash and recovery are abnormalLapthorne's analysis started by including episodes since 1870 when the S&P 500's decline could ostensibly have been rounded up to 20%. One recent example was the late-2018 sell-off that winded up as a 19.6% decline.But because the 2020 drop has been a different beast in terms of its speed, comparing it to every bear market was not empirically ideal.
　　And so he filtered for severe bear markets, defined as drawdowns of at least 30%, to make them comparable to this one. The roster of 15 meltdowns includes infamous sell-offs like the crash of 1929, Black Monday, and the dotcom bust. He found that on average, the S&P 500 recovered by 4% within a month, 13% within three months, and 27% within a year. The typical trajectory of recoveries is similar even when the Great Depression, often likened to the coronavirus crisis, is included.By comparison, stocks have leapt more than 30% from their bottom in March.