Asian stock markets have seen a bifurcation of risk taking today with Chinese stocks largely unchanged while Japanese and Australian stocks lift higher as risk markets remain hesitant going into tonight’s highly anticipated US inflation print. Currency markets are seeing some USD firming against risk currencies like Aussie, Pound Sterling and Euro as we head into the London session. Gold remains above the $1830USD per ounce level with a straight trend line since the end of January low still holding:
Mainland Chinese shares are looking a little shakey with a mid session slump that has been filled somewhat going into the close with the Shanghai Composite unchanged at 3480 points while the Hang Seng Index is also swimming around doing nothing, closing at 24850 points. Japanese stock markets were the best in the region with the Nikkei 225 lifting 0.4% higher to 27696 points as the USDJPY pair lifts somewhat, starting to push aside resistance at the previous weekly high at the mid 115 level:
Australian stocks had a decent session with the ASX200 finishing just 0.3% higher at 7288 points while the Australian dollar was largely unchanged, remaining in a holding pattern just below the the 72 handle after recently making a new weekly high. Can it hold on tonight after the US inflation print?
Eurostoxx and Wall Street futures are moving slightly higher as we head into the London open, with the S&P500 four hourly chart showing price matching the previous weekly high with the potential to break out above the 4600 point level if tonight’s inflation print goes the right way:
The economic calendar will focus squarely on the latest inflation print from the US later tonight.