The risk complex is reeling from higher tensions in the Middle East as a top Iranian general is killed, with oil prices spiking considerably in the wake of the attack. Stocks are generally down in the region, although the local market was spared while gold also spiked higher on the tension.
The Shanghai Composite is putting in a scratch session, currently down only 0.1% to 3086 points, still well above the previously long held 3000 point resistance level, while the Hang Seng Index has retraced slightly to be down 0.3% to 28461 points after advancing earlier in the session:
Japanese share markets remain closed for the new year while volatility in the thinly traded USDJPY pair has shot higher as the pair falls below key support at the 108 handle in the wake of a possible risk off move overnight:
The ASX200 was the best in the region due to a much lower Aussie dollar, gaining some 0.6% to finish the first trading week at 6733 points. The Australian dollar fell back below the 70 handle finally, as USD bids on safe haven took over the already poor sentiment and wiping out the last two weeks of gains:
Both S&P and Eurostoxx futures have reversed course after the ebullient sessions overnight with the S&P500 looking to retrace its New Year gains in what could be a volatile session to end the week:
The economic calendar ends the week with two pairs of very important releases. First German unemployment and CPI for December, then in the US its the ISM manufacturing and DOE oil inventory report. Have a good weekend and please stay safe in these troubled times….