Chinese stock markets continue to advance in their post zero-COVID bounceback as others play it cool following a poor lead overnight from Wall Street. The USD is mixed against most of the currency majors going into this week’s all important Fed meeting with Euro still below the 99 cent level while the Australian dollar has again been able to get above the 64 handle. Oil prices are pushing higher on Iranian/Saudi ructions with Brent crude above the $94USD per barrel level while gold is rebounding again, currently above the $1650USD per ounce level:
Mainland Chinese share markets continue to rebound sharply after their recent sharp falls with the Shanghai Composite up nearly 1.3% to 3009 points while the Hang Seng Index has lifted more than 2.4% to climb further above the 15000 point level at 15828 points. Japanese stock markets are still wavering with scratch sessions as the Nikkei 225 closes 0.1% lower at 27651 points, while the USDJPY pair has retraced slightly in line with other major currencies, unable to get back above the 148 handle:
Australian stocks also seemingly took the day off, with the ASX200 closing 0.1% higher, unable to cross above the 7000 point level to finish at 6986 points. The Australian dollar is still anchored here at the recent lows but managed an afternoon rally to get back above the 64 handle but is still hovering near its Friday night position as four hourly momentum remains flat:
Eurostoxx and US futures are not moving around much yet as we head into the London session with the overnight pullback on Wall Street looking like returning to the edge of the overall weekly uptrend. Price action has maintained itself off the 3800 area and is still above monthly resistance (upper black horizontal line) with medium term and possibly psychological long term resistance at the 4000 point level the next target above as we look through this tonight’s Fed meeting:
The economic calendar ramps up with German unemployment and the all important FOMC meeting with a big rate rise predicted by the US Federal Reserve.