An unsettled day on Asian stock markets after what looked like a green light post the US inflation print with last night’s Fed rate hike giving pause across the risk complex. The USD is pushing back against the commodity currencies, with Euro still looking strong as the Australian dollar pulls back from its recent high to be just above the 68 level. Meanwhile oil prices are trying to get off the floor with Brent crude just above the $82USD per barrel level while gold is breaking down yet again, this time losing support from its overnight volatility to crack below the $1800USD per ounce level:
Mainland Chinese share markets are again falling at the close with the Shanghai Composite staying below the 3200 point level, down 0.2% at 3168 points while the Hang Seng Index has fallen over 1%, down to 19732 points. Japanese stock markets are holding remarkably well despite the stronger Yen, with the Nikkei 225 closing 0.4% lower at just above 28000 points while the USDJPY pair is still looking a bit depressed, holding above the 135 level although USD wants to push higher:
Australian stocks couldn’t escape the selling with the ASX200 still holding on just above the 7200 point level, finishing 0.6% lower at 7204 points. The Australian dollar is moving lower as well, now down to the 68.30 level right on its previous session lows and looking to retrace sharply further to the pre-inflation print breakout level:
Eurostoxx and US futures are sliding even further lower from their overnight positions as we head into the London session with the S&P500 four hourly chart showing price action staying above the very important 4000 point level but still unable to crack above the medium term trend which remains down:
The economic calendar is packed again with the latest BOE and ECB interest rate decisions, then US retail sales and industrial production numbers.