A very poor start to the trading week for Asian stock markets with concerns over Chinese inflation and the ongoing COVID lockdowns not helping risk sentiment at all, combined with increased tensions in Europe while the Fed seems hell bent on raising rates sharply. The Australian dollar has rejoined its downtrend, now approaching the 74 cent versus USD, while Yen is selling off extremely sharply as the USD remains strong against the other major currency pairs, particularly Euro. Oil markets are looking weak again with Brent crude breaking just below the critical $100USD per barrel level while gold is largely unchanged from its Friday night breakout. Bitcoin has once again deflated down to daily support, currently anchored at the $42 level and looking to break for a new monthly low:
Mainland Chinese share markets are unsettled given the ongoing COVID domestic problems, with the Shanghai Composite closing 2.6% lower to 3167 points while the Hang Seng Index has slumped 3.1% to 21189 points. Japanese stock markets are also very unsteady with the Nikkei 225 closing some 0.6% lower to 26821 points while the USDJPY pair is soaring higher once again, this time pushing right through the 125 level and clearing out the March high in the process:
Australian stocks again were the outperformers in the region but that’s not saying much with the ASX200 closing just 0.1% higher to remain shy of the 7500 point level, while the Australian dollar has continued its fall, now heading towards the 73 handle as selling continues in the wake of a Chinese slowdown:
Eurostoxx and Wall Street futures are slowly drifting lower with the S&P500 four hourly chart showing how the previous bounce up to the 4500 point level has retraced back down to weekly support with momentum not indicating upside potential yet:
The economic calendar starts the trading week with UK GDP, a slew of Fed speeches and several Treasury auctions.