Asian share markets are back tracking from their previous bullish run in response to the very mixed lead from Wall Street overnight as the bond market continues to signal higher yields ahead. The next Federal Reserve FOMC meeting begins tonight and that’s why everything has been in a holding pattern of sorts with the USD with only Pound Sterling and Euro having any proper volatility. Bitcoin is also largely unchanged from its volatile start to the week, hovering just above the $56K level as trading ranges tighten and signal a breakout – or breakdown – is imminent:
The Shanghai Composite is dead flat going into the close, currently at 3446 points while the Hang Seng Index is doing the same, down a handful of points at 29014. Japanese markets are also putting in scratch sessions, with the Nikkei 225 closing 0.1% lower at 29914 points while the usually supportive USDJPY pair continues to slide slightly higher, still inching above the 109 handle after almost making a new weekly high:
The ASX200 is the worst in the region, falling nearly 0.5% to 6794 points while the Australian dollar is also struggling to gain momentum, failing again to make any new session high since starting the trading week as it slides towards the 77 handle in line with the modest decline in commodity prices:
Eurostoxx and S&P futures are flat lining too, with the four hourly chart of the S&P500 showing price wanting to surpass the previous record highs on its way up to th magical 4000 point level but momentum is stalled as everyone waits for the Fed punchbowl to be refilled:
The economic calendar includes the latest Eurozone inflation numbers plus the start of the FOMC meeting.