Asian stocks remain volatile after the sharp selloffs that started the trading week with Chinese shares still unsettled, while short covering occurs on local and Japanese bourses. The USD is regaining strength going into the London open as Euro dips below parity again while the Australian dollar can’t get back above the 69 cent level. Meanwhile oil prices are holding on to their overnight gains with Brent just above the $102USD per barrel level while gold is still retracing after its Friday night slump, now back to the $1730USD per ounce level and almost at its previous new weekly low:
Mainland Chinese share markets are having mild selloffs with the Shanghai Composite down 0.2% to 3232 points while the Hang Seng Index is off by nearly 0.5%, currently at 19935 points as it struggles to get back above the 20,000 point level again. Japanese stock markets have bounced back with the Nikkei 225 closing just over 1% higher at 28195 points while the USDJPY pair remains overextended as it hovers at the mid 138 level:
Australian stocks have rebounded slightly with the ASX200 closing just 0.4% higher to almost get back above the 7000 level, finishing at 6996 points. The Australian dollar hasn’t made a new session low but remains stuck here just above the 69 level at a new weekly low:
Eurostoxx and US futures are still listless as we head into the London session, with the S&P500 four hourly futures chart showing price action taking a deep breath here right above the 4000 point level. The four hourly chart shows momentum retracing from its formerly extremely overextended position, with the slim chance of a swing higher here:
The economic calendar includes the latest German inflation print, then US consumer confidence.