Another day of light selling on Asian stock markets as the risk complex remains extremely cautious leading into the US CPI print later tonight, with fears it could be the second punch in a whammy started with last week’s “too good” jobs print. The Australian dollar can’t find a bid, still hovering below the 63 cent level versus USD while other major currencies also remain weak. Oil prices are trying to stabilise following the recent OPEC production cuts, with Brent crude still above the $92USD per barrel level while gold is not making another new daily low here, but is still crushed below the $1700USD per ounce level, currently at $1669:
Mainland Chinese share markets are still putting in scratch sessions with the Shanghai Composite flat at 3025 points, still holding above the 3000 point barrier while the Hang Seng Index remains in sell mode, moving 0.4% lower to solidify its break below the 17000 point level, currently at 16640 points. Japanese stock markets are also moving lower, with the Nikkei 225 closing down 0.4% to 26283 points, while the USDJPY pair is now trying to get back above the 147 level as USD proves too strong against any defensive Yen bid:
Australian stocks again escaped a major selloff event, instead the ASX200 finished dead flat but still below the 6700 point level, closing at 6642 points. The Australian dollar is trying to build support at the 62 handle after making a new two year low and at least is not making any further four hourly session lows for now:
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 still hesitating here below the 3600 point level with an ominous descending triangle pattern forming. 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 will focus squarely on the latest US core inflation and CPI print.