Asian stocks start the new trading week in bear market mode, with risk sentiment remaining in defensive positions as recession fears mount amid rising interest rates. The USD is building strength against the major currencies, while oil prices are continuing their drops from Friday night with Brent crude falling below the $85USD per barrel level while gold has also been depressed, still crushed below former support at the $1700USD per ounce level, currently at $1642:
Mainland Chinese share markets are heading lower as we start a new trading week with the Shanghai Composite down 1.2% to 3051 points while the Hang Seng Index is still being crushed, down 0.7% at 17810 points. Japanese stock markets are the biggest losers with the Nikkei 225 closing some 2.6% lower at 26431 points while the USDJPY pair is trending higher as the USD gets stronger and stronger, now almost back to its previous weekly high just below the 144 handle:
Australian stocks were no longer the worst in the region but its all relative, with the ASX200 losing nearly 1.6% to close at 6469 points, a new monthly low. The Australian dollar is also moving lower with a gap down below the 65 handle filled later this afternoon, with more monthly lows underway as well:
Eurostoxx and US futures are still depressed as we go into the London session with the S&P500 four hourly futures chart showing continued lower price action below the 3700 point level. Medium term and possibly psychological long term resistance at the 4000 point level seems unattainable at the moment with support at 3800 points a distant memory:
The economic calendar starts the week with the closely watched German IFO survey then a few Fed speeches.