Risk markets are moving slowly into risk-off mode in response to the concerns on the widening delta variant of COVID-19, despite some better economic surveys both locally and in Japan. Gold is slowly gaining after a small surge overnight, now back to the $1778USD per ounce level while Bitcoin has been unable to gain any momentum, heading back towards the $34K level with no new session highs:
The Shanghai Composite has regained its early morning losses to be square going into the close, currently at 3595 points, while the Hang Seng Index is closed today. Japanese stocks are still weak despite a weaker Yen with the Nikkei 225 losing 0.3% to close at 28707 points as the USDJPY pair makes further gains after its big breakout overnight, pushing further above the 111 handle here:
Australian stocks have moved from unsettled to concerned due to the widening COVID crisis with the ASX200 losing nearly 0.7% to close below the 7300 point level at 7265 points. Meanwhile the Australian dollar remains under pressure, unable to find buying support at the 75 handle as it breaks below and matches the previous weekly low leading up to tomorrow night’s NFP print:
Eurostoxx and S&P futures are climbing slightly going into the London session with the four hourly chart of the S&P500 showing price wanting to head onwards to 4300 points although momentum is waning and market breadth is a key problem:
The economic calendar includes the continuing OPEC+ meeting, plus the very important US ISM Manufacturing PMI print.