Asian stock markets are green across the board in response to the volatile bounceback on Wall Street overnight following the softer than expected US core inflation print. The USD remains under stress against most of the majors with the Australian dollar hanging on above the 68 level but this could all come a cropper at tonights FOMC meeting. Meanwhile oil prices are trying to get off the floor with Brent crude just above the $80USD per barrel level while gold is holding on to its overnight breakout above the $1800USD per ounce level, just above the recent weekly high at $1810:
Mainland Chinese share markets are again sliding down 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 upwards, gaining 0.7% to 19757 points. Japanese stock markets are putting in equally strong returns despite the stronger Yen, with the Nikkei 225 also closing 0.7% higher at 28160 points while the USDJPY pair is still in depressed mode holding just above the 135 level as USD remains weak:
Australian stocks had very similar gains with the ASX200 lifting straight through the 7200 point level, finishing 0.7% higher at 7251 points. The Australian dollar moved slightly lower from its outsize surge overnight, but is still holding steady at a new weekly high at well above the 68 level:
Eurostoxx and US futures are holding to their overnight positions as well as we head into the London session with the S&P500 four hourly chart showing price action staying well above the very important 4000 point level but looking significantly overextended as the medium term trend remains down:
The economic calendar ramps up yet again tonight with UK inflation and then the latest FOMC meeting, which shall be quite interesting following the “soft” US inflation print from last night.