Risk markets absorbed the latest inflation print from Euro-land overnight following strong UK inflation numbers in the previous session with the USD surging against everything as a result. Wall Street is uneasy still with initial jobless claims numbers printing a little higher than expected. The Australian dollar was pushed much lower, currently hovering at the 69 cent level while Euro is dicing with parity in early morning trade. Commodity prices are mixed with WTI and Brent crude gaining a few dollars while gold lost at least $20 intrasession and is currently trading at $1756USD per ounce, making another new daily low.
Looking at share markets in Asia from yesterday’s session, where mainland Chinese share markets were falling with the Shanghai Composite down more than 0.5% going into the close at 3277 points while the Hang Seng Index also joined in, down 0.8% to be back below the 20,000 point level and removing most of its previous session gains. The daily chart is still showing considerable overhead resistance and daily momentum readings remaining quite negative as the moving average channel inches lower without any upside pressure. The May lows could come under pressure soon if there is another break below the low moving average:
Japanese stock markets had the most heavy selling however, with the Nikkei 225 losing more than 0.9% to close at 28942 points. The daily chart still shows a nice breakout here after finally clearing resistance at the previous highs at 28000 points with daily momentum remaining well overbought, although the recent daily candle is technically a one-day bearish reversal pattern. The overall monthly/weekly downtrend (sloping black line above) seems to be broken here after price action bunched up for so long so with very positive risk sentiment now, watch the 28000 point level to turn into support next:
