Asian stocks have slumped in the wake of Russia calling up a “partial” mobilization (aka filling in the tens of thousands of young Russian lives lost so far) and more sabre rattling, leading to a full handle drop in Euro and higher volatility on currency markets. Tonight’s long awaited Federal Reserve meeting will add the market chaos. Meanwhile oil prices have firmed slightly with Brent crude just above the $93USD per barrel level while gold has lifted ever so slightly, still well below recent weekly support at the $1700USD per ounce level, currently at $1672:
Mainland Chinese share markets are trying to stabilise with the Shanghai Composite down slightly to 3113 points while the Hang Seng Index is tripping up again, down more than 1.4% at 18494 points. Japanese stock markets are also selling off with the Nikkei 225 closing 1.3% lower at 27313 points while the USDJPY pair is pulling back, hovering just above the 143 handle:
Australian stocks were the worst in the region with the ASX200 losing more than 1.5% to close at 6700 points exactly. The Australian dollar followed suit almost before recovering later in the session, but it still well below the 67 handle and almost back again at its recent weekly lows:
Eurostoxx and US futures are steady but look nervous as we go into the London session with the S&P500 four hourly futures chart showing continued depressed price action. Medium term and possibly psychological long term resistance at the 4000 point level seems unattainable at the moment with support at 3800 points looking tenuous:
The economic calendar includes US existing home sales data and the long awaited Fed interest rate decision.