A snap OPEC meeting over the weekend has sent oil prices lower as more supply will be coming online in August, helping some risk currencies although the Aussie dollar missed out. Sentiment on stock markets is very poor as we start the trading week in reaction to the falls on Wall Street on Friday night on the back of surprising inflation expectations in the US. Bitcoin remains deflated as it hovers around the $32K level after making a new three week low last week and almost matching the start of year price.
Gold is just holding on above the $1800USD per ounce level and trailing ATR support as it remains at the Friday night lows at $1811 which equates to the previous overhead resistance level:
The Shanghai Composite was down more than 0.7% mid session but is closing half that gap going into the close, currently at 3525 points while the Hang Seng Index has fallen much sharper, down 1.5% to decisively break below the 28000 point level, currently at 27569 points. Japanese stocks are joining in on the pity party with the Nikkei 225 about to close 1.4% lower at 27609 points as the USDJPY pair remains stuck below the 110 handle as Yen safe haven buying keeps the strong USD at bay:
Australian stocks haven’t escaped the risk off mood with the ASX200 off by more than 0.7% going into the close at 7294 points. Meanwhile the Australian dollar remains quite depressed here as it continues to sell off below the 74 cent level as reweighing continues against USD:
Eurostoxx and S&P futures are sitting nervously here going into the London open with the four hourly chart of the S&P500 showing price barely a handful of points above its Friday night rout lows and ready to break below the previous dip lows from two weeks ago below the 4300 point level:
The economic calendar starts the week very quietly with some Treasury auctions on offer but not much else.