Asian stocks are having a poor session given the rising tensions in China and a pause overnight from more hawkish Fed talk, with Chinese stocks continuing their selling while the RBA meeting went and gone with no change in local stocks. The Australian dollar slumped on the 50bps rise by the RBA, after failing to push through the 70 level last week, pricing in the full hike. Meanwhile oil prices are slipping below key support levels, with Brent crude now below the $100USD per barrel level, while gold has continued its previous weekly highs with another push higher, currently at the $1780USD per ounce level:
Mainland Chinese share markets are selling off fast on renewed Taiwan tensions with the Shanghai Composite down 1.6% to 3207 points while the Hang Seng Index is now below the 20000 point barrier, having sold off more than 2% to be at 19707 points. Japanese stock markets are also losing ground, with the Nikkei 225 down 1.4% to 27594 points as the USDJPY pair drops below the 131 level again having lost a stunning 700 pips in less than 2 weeks:
Australian stocks slid in with a scratch session despite the RBA rate rise with the ASX200 closing 0.1% higher to almost push through the 7000 point level, closing at 6998 points. The Australian dollar flopped on the decision after failing to punch through the 70 handle in its recent trend, now below the lower trend channel line at the mid 69s as the rate rise was all priced in:
Eurostoxx and US futures are holding on to their start of week positions following the mild falls overnight with the S&P500 four hourly futures chart showing price action pausing here above the 4100 point level as the relief rally takes a breather:
The economic calendar is relatively quiet with a few sub tier Fed speeches to keep an ear out for.