Continued hesitation over inflation concerns and some mixed earnings reports caused Wall Street to fall back again, while European shares surged on the resignation of the UK PM Lettuce Truss. King Dollar remained strong against most currencies despite a mid session reversal, with Yen extending its 30 year plus low as the USDJPY pair hit the 150 handle. US bond markets sold off with 10 year Treasury yields pushing above the 4.2% level, making a 14 year high. Meanwhile commodities remain mixed, with oil prices pulling back slightly after a mid session surge as Brent crude finished at the $92USD per barrel level while gold remained under a of pressure following the inflation prints, slumping again at the $1627USD per ounce level.
Looking at share markets in Asia from yesterday’s session where Chinese share markets recovered an early loss before retracing again going into the close with the Shanghai Composite down 0.3% at he 3030 point level while the Hang Seng Index crashed again, down more than 2% at one stage before finishing 1.4% lower at 16280 points. The daily futures chart continues to show a deep bear market in place, with price deceleration no longer evident around the 16500 point mid level. As I said last week following the failure of the recent dead cat bounce, the subsequent break below the 17000 point level is likely to accelerate the selloff with a new low settling the case:
Japanese stock markets also fell back with the Nikkei 225 finishing just under 1% lower at 27006 points, The daily price chart was showing a possible breakout brewing here under overhead resistance at the 27500 level in this second bounce of the dead cat that could have more traction as Yen depreciates sharply against USD. Futures are indicating a flat finish to the trading week here despite momentum pushing through the positive zone:
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