Asian stock markets are having a mixed start to the trading week, with risk sentiment unsettled as we head into a very busy economic calendar that includes the latest US Federal Reserve meeting. Currency markets are experiencing some revival in strength in the USD with Euro remaining below the 1.09 handle while the Australian dollar is trying to fight resistance above the 71 cent level. Meanwhile oil prices are breaking down from their holding pattern with Brent crude about to cross below the $86USD per barrel level as gold held fast this morning to regain some of its Friday night losses, currently just above the $1930USD per ounce level:
Mainland Chinese share markets have returned from the Lunar New Year holidays with the Shanghai Composite up 0.5% to 3282 points while the Hang Seng has slumped nearly 2% to fall back to the 22260 point level. Japanese stock markets are treading water yet again, with the Nikkei 225 barely moving at 27381 points with the USDJPY pair gapped higher initially this morning before retracing right on to the mid 129 level as traders await this week’s Fed decision:
Australian stocks have gone nowhere with a scratch session on the cards as the ASX200 dices with the 7500 point level. The Australian dollar is holding just below the 71 handle, continuing its mid week pause but is starting to feel the weight of overhead resistance here:
Eurostoxx and US futures are drifting downwards as the S&P500 four hourly chart shows price action wanting to hold above the psychologically important 4000 point zone, but is gapping below its Friday night highs. Short term momentum is retracing from overbought readings which could spell some short term trouble before this week’s Fed meeting:
The economic calendar starts the week with flash German GDP results plus a slew of Euro and Treasury auctions.