Asian stock markets are reacting in mixed fashion to the overnight ructions on Wall Street, where its really about the fallout in bond markets as continued signalling from the Federal Reserve is one of battling inflation whatever it takes. Tonight’s US unemployment print will be pivotal to risk taking for the rest of the year, with a Santa Rally already priced in. The USD is still down against the majors with Euro pushing above the 1.05 level while the Australian dollar is hovering just above the 68 cent level. Oil prices are trying to advance but finding resistance with Brent crude hovering at the $87USD per barrel level while gold has slipped slightly below the key $1800USD per ounce level:
Mainland Chinese share markets gapped lower at the open and are retreating further with the Shanghai Composite down more than 0.4% to the 3154 point level while the Hang Seng Index is off a similar amount, down 0.6% to 18612 points. Japanese stock markets are selling off sharply with the Nikkei 225 down more than 1.7%, currently at 27724 points while the USDJPY pair is still falling albeit at a slower rate, currently just above the 138 handle, still deep into sell mode as USD falters:
Australian stocks weren’t able to escape a selloff, with the ASX200 down 0.6% or so to just above 7300 points. The Australian dollar is unchanged, unable to advance further above the 68 cent level vs USD as short term momentum keeps it past the former weekly highs:
Eurostoxx and US futures are holding on to their previous gains but only just as hesitation build going into the London open with the S&P500 four hourly chart showing price action retreating from the 4100 point level after taking out former resistance at 4000:
The economic calendar will end the week with the Big One – non farm payrolls or NFP aka US unemployment.