The Fed fallout continues here in Asia as stock markets retrace sharply or fail to advance following a sharp decline on Wall Street overnight as the Fed goes all in on tackling inflation. The USD is up against most of the currency majors after some high intrasession volatility overnight with Euro remaining below the 98 level while the Australian dollar has been unable to get above the 64 handle. Oil prices are pushing higher on Iranian/Saudi ructions with Brent crude just below the $96USD per barrel level while gold is still near its overnight lows, currently at the $1637 USD per ounce level:
Mainland Chinese share markets are pulling back slightly after their recent sharp rebound with the Shanghai Composite down around 0.3% to just below 3000 points while the Hang Seng Index has slumped again, down more than 2.4% but still above the 15000 point level at 15397 points. Japanese stock markets are still wavering with another scratch session as the Nikkei 225 closes 0.1% lower at 27663 points, while the USDJPY pair has retraced slightly in line with other major currencies, unable to get back above the 148 handle:
Australian stocks were hit hard as expected, with the ASX200 closing 1.8% lower, pulling back below the 6900 point level to finish at 6857 points. The Australian dollar is still under enormous pressure here as it fails to get back above the 64 handle and ready to return to the October low positions in the wake of the hawkish Fed:
Eurostoxx and US futures are trying to lift off the floor but not moving around much as we head into the London session with the overnight steep retracement on Wall Street having broken the overall weekly uptrend. Price action had been maintaining itself around the 3800 area but is now below monthly resistance (upper black horizontal line) with medium term and psychological long term resistance at the 4000 point level again a distant memory:
The economic calendar ramps up with the Bank of England meeting, then US non-manufacturing PMI prints.