Asian stock markets have retreated in the wake of the slump on Wall Street overnight as inflation fears continue to dominate with the USD becoming a strong safe haven. The Australian dollar couldn’t escape the selling almost making a new weekly low down to the 68 cent level. Meanwhile oil prices are drifting slightly lower with Brent crude hovering just above the $82USD per barrel level as gold is unchanged but still depressed here at the $1835USD per ounce level:
Mainland Chinese share markets are pulling back with the Shanghai Composite down 0.4% to 3293 points while the Hang Seng is off just 0.2%, now at 20491 points. Japanese stock markets are in a proper retreat however with the Nikkei 225 closing 1.4% lower at 27109 points while the USDJPY pair has pulled back ever so slightly to hover just below the 135 level, still near its previous weekly high:
Australian stocks have again failed to gain traction with the ASX200 closing 0.3% lower to remain well below the 7400 point level at 7314 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 still quite weak with little change as the former plays catchup to the latter, with the S&P500 four hourly chart showing price action barely off the 4000 point level. The possibility of a swing trade has been wiped out with a return to the dominant downtrend quite evident:
The economic calendar includes the latest German inflation print, IFO business survey and then the release of the previous FOMC minutes.