While there was no change to the Bank of Japan’s interest rates at today’s meetings, the USD has surged across the board as US Treasury yields climb sharply on the return of US traders to their desks as the long weekend finishes. This has seen Asian stock markets put in mixed sessions despite lower domestic currencies – particularly Yen and the Australian dollar – with gold barely holding on to its poor Friday finish, falling slightly below $1820USD per ounce level, as buying support is tested:
Mainland Chinese shares are the odd ones out, heading higher on the expectation of more rate cuts from the PBOC with the Shanghai Composite up 0.5% to 3558 points while the Hang Seng Index is slipping again, losing 0.4% to 24124 points. Japanese markets are still not liking the weaker Yen with the Nikkei 225 closing 0.3% lower at 28261 points as the USDJPY pair pushed higher again on the BOJ meeting, almost getting through the 115 level to advance further on its Friday night bounceback off a new monthly low:
Australian stocks are going nowhere, with the ASX200 down just 0.1% to close slightly above the 7400 point level at 7409 points, while the Australian dollar slumped on the surging USD, brekaing through its Monday morning gap start level and the 72 handle, seemingly confirming its Friday night slump:
Eurostoxx and Wall Street futures are falling going into the London open, with the S&P500 four hourly chart showing price wanting to return to the Friday night lows with the potential still building for another dip down to the 4600 point level:
The economic calendar continues with UK unemployment, the closely watched German ZEW survey then a series of US Treasury auctions.