Another weak session on Asian stock markets with confidence brittle in response to the US mid term elections results and continued volatility around Ukraine. The USD is still basically unchanged against the major currencies with Euro remaining below the 1.04 level while the Australian dollar dropped on the unemployment print but is still maintaining a position above the 67 cent level. Oil prices are starting to decline with Brent crude dropping below the $91USD per barrel level while gold is also pulling back slightly, currently at the $1763USD per ounce level, coming up against short term support but looking stretched:
Mainland Chinese share markets went nowhere from the get go, selling off into the close with the Shanghai Composite down nearly 0.7% at 3099 points while the Hang Seng Index has also lost ground, currently down more than 1.6% to 17962 points. Japanese stock markets are putting in scratch sessions with barely any change, the Nikkei 225 closing 0.4% lower at 27925 points, while the USDJPY pair has stayed flat all session, currently just sitting above the 139 handle but looking extremely weak on the four hourly chart:
Australian stocks were the odd ones out today with the ASX200 closing 0.2% higher at 7135 points. The Australian dollar pulled back on the numberwang print but is maintaining a relatively strong position here just above the 67 handle, with four hourly momentum retracing but still positive as resistance overhead just can’t be cleared:
Eurostoxx and US futures are drifting lower amid the macro volatility, with the S&P500 four hourly chart showing price action well contained below the 4000 point level as support is about to be tested below:
The economic calendar is jam packed again with the main focus on the Euro core inflation and US building permit prints.