Asian stock markets are generally positive in response to the bounceback on Wall Street overnight but there is a lot of hesitation and concern floating around tonight’s US core inflation print. This is reflected in currency markets with USD reasserting itself against some of the majors while the Australian dollar is hanging on around the mid 67 level. Meanhile oil prices are still depressed with Brent crude still depressed at the $79USD per barrel level while gold is struggling after breaking below the $1800USD per ounce level at the start of the week:
Mainland Chinese share markets are sliding going into the close with the Shanghai Composite staying below the 3200 point level, down 0.1% at 3174 points while the Hang Seng Index has moved only slightly upwards, gaining 0.2% at 19511 points. Japanese stock markets are meandering along with some increased buying activity, with the Nikkei 225 up 0.4% at 27942 points while the USDJPY pair has been able to hold above short term resistance at the 137 level in the wake of a stronger USD:
Australian stocks were mid stream in gains with the ASX200 lifting just back above the 7200 point level, finishing 0.3% higher at 7203 points. The Australian dollar moved around a little today on some economic prints but is basically where it started the week at the mid 67 level, remaining under short term resistance overhead:
Eurostoxx and US futures are holding to their overnight positions with the former playing catchup. The S&P500 four hourly chart shows price action just above the very important 4000 point level and looking significantly overextended as the medium term trend remains down:
The economic calendar ramps up with German inflation, UK unemployment and the closely watched ZEW Survey. But it goes into overdrive with the latest US core inflation print late tonight.