Asian stock markets are likely to finish the week on a sour note as the expected Brexit extension from the EU plus some very modest inflation and economic figures from Japan combined to dampen overnight positive sentiment. Australian stocks were the only ones to advance as the Aussie dollar remained depressed after its overnight reversal among other undollar assets.
The Shanghai Composite is down nearly 0.8% going into the close to get back below 3100 points, currently at 3077 while the Hong Kong Hang Seng Index is off about 0.5% to 28913 points, unable to hold above last week’s breakout at 29000 points, setting up for disappointment going forward:
US and Eurostoxx futures are up slightly going into tonight’s session with the four hourly chart of the S&P 500 showing price unmoved above its reversal breakout last night around 2860 points, but it remains to be seen if this overconfidence can translate into further gains:
Japanese stock markets returned from their holiday to much ado about nothing with the Nikkei 225 looking to close with yet another scratch session. The inability of the USDJPY pair to climb out of its current funk following the FOMC meeting reversal is weighing domestic stocks down with the pair hovering at the low moving average on the four hourly chart and unchanged:
The ASX200 is the only standout today, lifting nearly 0.4% higher going into the close where it might pip above 6200 points, currently at 6190. The Australian dollar has also remained subdued and is just holding on above the 71 handle and the longer term downtrend line:
The economic calendar finishes the week with a slew of preliminary manufacturing PMI’s from Europe, then Canadian CPI, then US PMIs and home sales.
Have a good weekend!