Asian stock markets remain in selling mode across the region in the wake of the too good but bad US jobs report on Friday that solidified the rise of more interest rates from the US Fed, alongside higher USD and bond yields. The Australian dollar continues to make new lows, now with a 62 in front of it while Euro remains extremely weak. Meanwhile oil prices are holding on to their recent gains due to the OPEC production cuts, with Brent crude still above the $95USD per barrel level while gold is trying not to make another new daily low here, still crushed below the $1700USD per ounce level, currently at $1668:
Mainland Chinese share markets have been the exception with the Shanghai Composite putting in a scratch session, although its still just below the 3000 point barrier while the Hang Seng Index has remained in reversal mode, closing 1.5% lower to now break below the 17000 point level as its steep bear market continues. Japanese stock markets reopened after another long weekend with the Nikkei 225 closing more than 2.5% lower at 26401 points as it plays catchup, while the USDJPY pair is again trying to lift further above the 145 level as USD proves too strong against any defensive Yen bid:
Australian stocks escaped most of the selling, but the ASX200 still finished down 0.3% to remain below the 6700 point level, closing at 6644 points. The Australian dollar is still falling as well, breaking well below the 63 handle to the mid 62 level and a new two year low:
Eurostoxx and US futures are drifting lower as we head into the London session, with the S&P500 four hourly futures chart showing price action hesitating here just above the 3600 point level. Medium term and possibly psychological long term resistance at the 4000 point level is now a distant memory as momentum and price action are pointing to a return to the previous lows, and possibly the June lows after the NFP print:
The economic calendar includes the latest UK unemployment print, then some Fed central banker speeches.