Asian stock markets got a little spooked by a spike in COVID cases in China with little to focus on the economic calendar as the US mid term elections loom large on the risk radar. The USD is slightly higher against most of the currency majors but its all relative given the huge moves following last week’s US jobs figure prints with Euro dicing with parity as the Australian dollar is still failing to get above the 65 handle. Oil prices are slightly off with Brent crude just below the $98USD per barrel level while gold is down somewhat from its Friday night surge highs, currently at the $1668USD per ounce level:
Mainland Chinese share markets are pulling back after their recent sharp rebound with the Shanghai Composite currently down 0.7% at 3055 points while the Hang Seng Index has lost a similar amount, but remaining above the 16000 point level at 16491 points. Japanese stock markets are still playing catchup with the Nikkei 225 closing 1.3% higher at 27887 points, while the USDJPY pair has moved slightly higher but still on key support levels below the 147 handle:
Australian stocks finished broadly positive as expected despite the poor consumer confidence print with the ASX200 closing 0.3% higher, remaining above the 6900 point level to finish at 6958 points. The Australian dollar just can’t push through the 65 handle with a series of tight candles on the four hourly chart running out of upside momentum here with the October high position above seemingly out of reach in the wake of the hawkish Fed:
Eurostoxx and US futures are trying to lift higher as we head into the London session with the S&P500 four hourly chart showing price action still bunched up here below the 3800 point level. This market is still somewhat contained and below the recent uptrend line, unlike other bourses so watch for a breakout above 3800 points and trailing ATR resistance before getting too excited here:
The economic calendar is light on again with a few BOE and ECB speeches to keep an ear out for.