Several holidays across the region plus a closed Europe tonight is not helping volatility as we head into tonight’s Federal Reserve meeting as speculation mounts as to what is going to happen to interest rates. The USD remains strong after building overnight, with the Australian dollar still in the doldrums below the 65 cent level.
Oil prices are slipping further with Brent crude now down to the $85USD per barrel level while gold is continuing its struggle, remaining well below the $2300USD per ounce level this afternoon:
Mainland and offshore Chinese share markets are again looking listless with the Shanghai Composite down 0.3% while the Hang Seng Index has lifted just 0.1% to close at 17762 points. Japanese stock markets slipped back again with the Nikkei 225 down 0.31% while the USDJPY pair is trying hard to normalise with a steady lift to almost get through the 158 level:
Australian stocks were the worst performers with the ASX200 closing more than 1.2% lower at 7569 points while the Australian dollar remains depressed below the 65 cent level in afternoon trade:
S&P and Eurostoxx futures are barely holding on as we head into the London session with the S&P500 four hourly chart showing price action at the lower end of its recent range after last night’s correction, with the 5000 point level coming under threat next:
The economic calendar includes the US ISM manufacturing print but all the focus will be on the FOMC meeting thereafter.