A muted tone across risk markets here in Asia with the lack of a lead forthcoming from Wall Street due to the long weekend holiday in the US partly to blame. Currency markets are seeing a mild reduction in USD strength coming from Friday’s volatile session, although gold remains nice and calm above the $1900USD per ounce barrier. Bitcoin continues its flameout and has begun to selloff again, heading below the $35K level with the target below at $30K not that far away:
The Shanghai Composite is up 0.2% going into the end of May month rebalancing, currently just over 3600 points while the Hang Seng Index is taking back its Friday gains, currently down 0.6% at 28954 points. Japanese stocks are also in retreat mode with the Nikkei 225 taking half of its previous session gains, down 1% to 28860 points as Yen is bought up slightly after the Friday night run on the USDJPY pair as it returns below the handle after being extremely overbought:
The ASX200 is holding on with a minor loss, down only 0.2% to start the trading week still well above the 7100 point level, closing at 7161 points, while the Australian dollar has gapped higher, heading back above the 77 handle vs USD , but this was due to the oversold nature on Friday night and could prove transitory:
Eurostoxx and S&P futures are down 0.2% going in the London open where it will be a quiet night given the US holiday with the four hourly chart of the S&P500 showing price wanting to get on with past the barrier around the 4200 point level but that megaphone pattern may negate further rises for the time being:
The economic calendar starts quietly although we have German inflation figures to worry about first up tonight, with the RBA meeting tomorrow afternoon a key event to watch out for.