Asian stock markets are having a mixed start to the trading week, following on from the hesitation on Friday to absorb the hugely positive NFP US jobs print on Friday night with most markets in retreat. Currency markets gapped lower against USD but have stabilised somewhat as we head into the London open with the Australian dollar at a new two week low as the RBA meeting beckons tomorrow. Meanwhile oil prices are slipping with Brent crude hovering above the $80USD per barrel level as gold also consolidates after its huge selloff on Friday night overnight, currently settling just above the $1875USD per ounce level:
Mainland Chinese share markets are falling into the close with the Shanghai Composite down 1% to 3230 points while the Hang Seng is doing worse, off by more than 2.5% to 21159 points. Japanese stock markets are starting the week in a more positive mood with the Nikkei 225 closing 0.7% higher at 27698 points with the USDJPY pair gapping significantly higher on the weekend open before retracing to just above the 131 level as Yen selling gathers pace in the wake of a higher USD:
Australian stocks were again the best performers in the region, relatively speaking, with the ASX200 closing just 0.2% lower to hold on above the 7500 point level, closing at 7539 points. The Australian dollar gapped lower on the weekend open but has clawed back to near the Friday night finish at just above teh 69 handle, looking very weak here going into tomorrow’s RBA meeting:
Eurostoxx and US futures have gapped down slightly to increase their losses from Friday night with the former catching up to the latter following the big drops on Wall Street. The S&P500 four hourly chart shows price action holding above the psychologically important 4000 point zone, but short term momentum has retraced into barely positive territory so watch for any attempt to cross below ATR support:
The economic calendar is always quiet post the NFP print with some US Treasury auctions the only highlight tonight.