Equity markets obviously didn’t like the “surprisingly” higher inflation print overnight and that has translated into lower closes across Asian stock markets at the end of the trading week. The USD remains King, accelerating against all the majors with gold retracing down to recent daily support just above the $1820USD per ounce level which could threaten its trend from the end of January:
Mainland Chinese shares are falling going into the close with the Shanghai Composite down 0.4% at 3474 points while the Hang Seng Index is off by 0.6% at 24780 points. Japanese stock markets are closed for yet another holiday with the USDJPY pair largely unchanged after the big inflation surge overnight, just above the 116 handle:
Australian stocks fell with everything else with the ASX200 finishing 1% lower at 7217 points while the Australian dollar was sold off immediately after the volatility overnight, heading below the 72 handle and wiping out the recent weekly highs:
Eurostoxx and Wall Street futures are dropping sharply as we head into the London open, with the S&P500 four hourly chart showing price wanting to return to the previous weekly breakout level after falling out of bed from the latest inflation print:
The economic calendar finishes the trading week with German inflation, UK GDP and the US Michigan consumer sentiment survey.