by Chris Becker
A lack of trading volume as risk markets hesitate before the dual ECB/Fed meeting this week saw most Asian stock markets retreat slightly today, with currency markets also relatively stable. Oil prices gained a little, particularly Brent crude, but overall a calm before the storm.
In mainland China the Shanghai Composite has given back its previous gains and then some, dropping back below key support at 3300 points, by closing down nearly 1% lower at 3297 points. The Hang Seng Index also fell, down 0.3% to 28885 points unable to maintain the start of week bounce. The high moving average on the daily chart is the area to watch here:
S&P futures are still melting higher, as traders eye all risks as good risks to BTFD:
Japanese stocks were mixed with the broader TOPIX up slightly while the Nikkei 225 retreated about 0.3% to finish at 22866 points. The Nikkei is rejecting overhead resistance at 23000 points with no help from Yen, which has remained steady throughout the Asian session. The USDJPY pair is remaining just above the 113 handle and below the weekly downtrend line, so the low moving average on the four hourly chart at 113.20 is the area to watch tonight for a possible retracement:
The ASX200 lept out of the gates at the open, slowly winding back during the session but finally closed back above 6000 points, up 0.2% higher to 6013 points. The banks came back alongside most of the major commodity players, but the index was dragged down by the industrials.
The Aussie dollar is still trying to find a bottom here after falling most of last week, trying to push itself above the high moving average band on the four hourly chart, but really only making sideways progress. The Pacific Peso will be at the whim of the northern hemisphere central banks this week:
The data calendar ramps up tonight with two major releases, both Euro-centric. First its the UK CPI print for November, then the very closely watched German ZEW Survey.