Asian stock markets are in retreat today after a mixed start to the trading week and absorbing the overnight US inflation print. More market intervention in China hasn’t helped local markets while the USD is getting stronger again after a wobble on currency markets overnight that has seen the Australian dollar test the 69 cent level, although this could be due to Governor Lowe’s comments today. Meanwhile oil prices are pulling back slightly with Brent crude crossing below the $85USD per barrel level as gold continues to remain depressed, now crossing below the $1850USD per ounce level:
Mainland Chinese share markets sold off straight from the open and are fading again going into the close with the Shanghai Composite down 0.4% at 3280 points while the Hang Seng is continuing its recent falls, down another 1.3% to 20825 points. Japanese stock markets are also in retreat with the Nikkei 225 closing 0.6% lower at 27473 points with the USDJPY pair lifting back to its overnight highs at just above the 133 level:
Australian stocks slumped with the ASX200 losing more than 1% to finish below the 7400 point level, closing at 7352 points. The Australian dollar has also stalled from its overnight volatility, almost breaking through the 69 level:
Eurostoxx and US futures are rolling over slightly as traders absorb the latest US inflation data with the S&P500 four hourly chart showing price action now testing the session lows from overnight. Short term momentum never got quite overbought despite the recent swing play and is starting to test negative levels here:
The economic calendar tonight includes UK core inflation and US retail sales.