Outside of Hong Kong, Asian stock markets are still in a negative funk as the risk complex is dominated by recession fears and higher inflation. The USD is still strong against most of the major currency pairs with the Australian dollar still struggling to lift above the 67 cent level. Oil prices are still depressed with Brent crude slumping below the $78USD per barrel level while gold is trying to hard to keep its overnight gains intact, hovering just below the $1790USD per ounce level:
Mainland Chinese share markets started lower at the open, with a small rally here struggling to convert into a positive finish with the Shanghai Composite moving back below the 3200 point level to be down 0.3% to 3191 points. Meanwhile the Hang Seng Index has soared higher on news the HK government may ease COVID restrictions, lifting more than 3% to 19372 points. Japanese stock markets remains in sale mode, with the Nikkei 225 finishing 0.3% lower at 27576 points while the USDJPY pair has been unable to get back above short term resistance at the 137 level:
Australian stocks couldn’t find a strong bid and were mixed across the sectors as the ASX200 finished nearly 0.8% lower at 7175points. The Australian dollar was unable to claw back any of its overnight losses, still hovering around the 67 handle with short term momentum still clearly negative:
Eurostoxx and US futures have been unable to climb back higher from their overnight losses going into the London open with the S&P500 four hourly chart showing price action still under last week’s low and of course the very important 4000 point level:
The economic calendar will include a closely watched speech by ECB President Lagarde, then the latest US weekly initial jobless claims print.