Last night again saw Wall Street fall back in the wake of more hawkish Fed talk with the potential for another 200 points in rate rises coming in 2023. Amid the background of the Poland missile crisis, European shares were relatively flat while the USD was pushed around against the individual major currencies with Euro relatively firm above the 1.03 level as the Australian dollar slumped back down to the 66 cent level. US bond markets saw more yield inversion with 10 year Treasury yields lifting slightly back above the 3.7% level while commodities were under pressure on all sides with Brent crude dropping to the $90USD per barrel level as gold had another consolidating session, maintaining its current uptrend but pausing at the $1760USD per ounce level.
Looking at share markets in Asia from yesterday’s session where Chinese share markets sold off mid session but scrambled higher into the close with the Shanghai Composite only down 0.2% at 3115 points while the Hang Seng Index also lost ground in similar fashion, but stayed down at the close, finishing 1.1% lower at 18045 points. The daily chart is finally showing a slowdown after having gained nearly 4000 points since testing the 2008 lows. Its pretty obvious that daily momentum was getting ahead of itself before reaching the magical 20000 point level so watch for a this retracement to possibly expand further:
Japanese stock markets were looking to put in scratch sessions with barely any change but slumped at the finish with the Nikkei 225 closing 0.4% lower at 27930 points. The daily price chart was showing a breakout brewing as overhead resistance at the 27500 level is cleared but more wobbles are appearing here as the too strong Yen and lack of upside action on Wall Street hampers buying confidence. A potential pullback is building here below the trend line as price action stalls amid although daily momentum remains overbought. Support needs to hold at the 27500 point level:
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