Macro Afternoon

Advertisement

Its the end of the month combined with the fallout from last night’s (early morning!) FOMC meeting and subsequent rate cut has been somewhat restricted to currency markets, but mainland Chinese stocks are pulling back in the wake of the disappointing PMI print, as the overall mood remains somewhat mixed.

The Shanghai Composite fell gain as the contracting PMI print stayed off risk taking, falling nearly 0.4% lower to 2929 points, while the Hang Seng Index is moving the other way, up nearly 0.8% to be at 26873 points, staving off the stall below the previous weekly high and weekly downtrend line:

Advertisement

Japanese share markets are doing quite well considering the weakness in USD sending Yen higher with the Nikkei 225 closing 0.4% higher, taking back the previous gains to 22927 points. The USDJPY pair had a big spike but subsequently fell back well below the 109 handle going into the London session, taking price back to last week’s high:

The ASX200 continues to suffer, down 0.4% to close at 6663 points, after recently breaking below the 6700 point barrier, mainly due to the sharp rise in the Aussie dollar going straight through last week’s high and the 69 handle getting way overbought in the process:

Advertisement

Both S&P and Eurostoxx futures are down slightly with the S&P500 four hourly chart however still showing quite a bullish mood in fits and spurts with the latest Fed cut should providing a catalyst for more upside:

Advertisement

The economic calendar is very busy tonight with European wide CPI and US PCE Core spending, as we run up to Friday night’s NFP print.