Asian stock markets are listless following what looked like a good night for risk markets with the passing of President Biden’s infrastructure plan overshadowed by a weaker than expected inflation print that should have reset expectations of the Fed tapering later rather than sooner. Undollar assets are giving back some of their gains from overnight as USD regains strength although gold is holding on the $1750USD per ounce level after being unchanged throughout today’s session:
The Shanghai Composite was again unable to gain traction throughout most of the session, closing 0.2% lower at 3524 points while the Hang Seng Index was put firmly in reverse, falling nearly 1% to take out most of its recent gains, closing at 26397 points. Japanese stocks also pulled back, but only mildly with the Nikkei 225 losing just 0.2% to finish just below the 28000 point level as the USDJPY pair was largely unchanged from its pullback on USD weakness overnight, hovering just above trailing ATR support and firm at the 110.40 level:
Australian stocks are putting in a scratch session with the ASX200 closing only 4 points higher to 7588 points as the Australian dollar failed to make good on its previous breakout, losing half its gains to get back down to the mid 73 handle as expected:
Eurostoxx and S&P futures are holding steady going into the London open,with the four hourly chart of the S&P500 showing price wanting to eke out yet another record high but not overly overbought with support firmly anchored at the 4420 point level:
The economic calendar includes UK GDP figures, then Euro wide industrial production followed by US weekly initial jobless claims.