Risk markets have headed to safety throughout the Asian session despite a lack of solid news, with the USD and Treasury yields lifting as a result. The Australian dollar couldn’t escape the selling either despite the RBA signalling more aggressive rate rises as it falls back below the 69 cent level. Meanwhile oil prices are drifting slightly lower with Brent crude hovering just above the $83USD per barrel level as gold fails to get out of its depression, rolling back below the $1840USD per ounce level:
Mainland Chinese share markets are pulling back after a solid start with the Shanghai Composite up just 0.1% to 3293 points while the Hang Seng is down a full 1%, now at 20688 points. Japanese stock markets are also mixed with the Nikkei 225 about to close 0.2% lower at 27484 points while the USDJPY pair is slightly rebounding off support to almost hit the 134 mid level, and only slightly off its previous weekly high:
Australian stocks have again failed to gain traction with the ASX200 closing 0.2% lower to remain well below the 7400 point level at 7336 points. The Australian dollar is rolling over after failing to defend the 69 level and looks weak here after recently making a new weekly low:
Eurostoxx and US futures are playing catchup and that means going lower after the poor showing on Friday night with the S&P500 four hourly chart showing price action barely off the previous weekly lows. The possibility of a swing trade has been wiped out with a return to the dominant downtrend quite evident:
The economic calendar will include a slew of manufacturing and services PMIs across Europe and the UK tonight, with the closely watched German ZEW survey as well.