Asian stock markets are putting in some very poor finishes to the trading week as the post ECB/BOE policy tightening volatility shifts to equity markets following a much weaker USD that has substantially reversed overnight. The Aussie dollar is following risk markets lower while Bitcoin hovers just below the $48K level, but its all about gold at the moment, having reversed sharply its now finally moved above the $1800USD per ounce level since the end of November:
Mainland Chinese shares are putting in a poor session to finish the week, with the Shanghai Composite down nearly 1% to 3640 points while the Hang Seng Index is slumping again, down 1.3% to 23175 points as Japanese markets retrace most of their very bullish previous session with the Nikkei 225 down nearly 1.5% to 28662 points. Meanwhile the USDJPY pair is moving slightly lower, heading down to the mid 113 level and breaking on short term support as the weaker USD weighs on risk sentiment:
Australian stocks stood out due to putting in a positive return, but only just, with the ASX200 closing 0.1% higher, just above the 7300 point level while the Australian dollar has stabilised here after pulling back and reversing almost all of the overnight gains, slowly deflating into the mid 71 level going into the London open:
Eurostoxx futures and S&P futures are still pulling back after last night’s (over)reaction to the BOE and ECB tightening, with the S&P500 four hourly chart showing price back below the recent megaphone pattern limit at the 4650 point level as short term support tries to firm up without another trip to the 4600 point level:
The economic calendar finishes the week with the German IFO survey then Euro wide core inflation prints.