Macro Afternoon

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Asian stock markets haven’t climbed as much as expected given the stonking returns on Wall Street overnight as the risk complex pivots past a slowing down Federal Reserve. Tonight’s US core inflation numbers could pivot things again with the USD losing significant ground in the last 24 hours as Euro pushing through the 1.04 level while the Australian dollar ignored the latest CAPEX figures to push further above the 67 cent level. Oil prices are playing catchup but continue to look weak with Brent crude hovering at the $87USD per barrel level while gold is trying to take back its November highs, currently zooming along at the $1780USD per ounce level:

Mainland Chinese share markets gapped at the open and stayed there with the Shanghai Composite up more than 0.8% to the 3176 point level while the Hang Seng Index is still moving higher, finishing up 1.3% to 18828 points. Japanese stock markets finally played catchup with the Nikkei 225 closing 0.9% higher at 27924 points while the USDJPY pair has collapsed below the 138 handle, still deep into sell mode as USD falters:

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Australian stocks were able to finish higher, helped by the big wins on Wall Street overnight with the ASX200 finishing up 1% to 7354 points. The Australian dollar continued its own liftoff, breaking through the 68 cent level vs USD as short term momentum takes it past the former weekly highs:

Eurostoxx and US futures are holding on to their outsized gains with the former likely to play catchup on the London open while the latter will want to advance even further tonight. The S&P500 four hourly chart shows price action threatening the 4100 point level taking out former resistance:

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The economic calendar is busy again tonight, with the ECB council meeting, German retail sales and then two big ones – US core inflation and ISM manufacturing PMI.