US stocks were lower across the board overnight as the weight of more hawkish Fed takes and mixed earnings pushed risk sentiment lower. European shares were somewhat mixed with the USD remaining quite strong against the currency majors. Euro was pushed further below the 1.08 handle, while the Australian dollar has retraced sharply to almost below the 69 cent level. 10 year Treasury yields pulled back slightly, remaining above the 3.6% level while the commodity complex saw oil prices lift higher with Brent crude pushing through the $85USD per barrel level. Gold remains flummoxed post the NFP print, and can’t get back above the $1875USD per ounce level.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets climbed slightly initially with the Shanghai Composite up 0.3% at one stage before falling sharply into the close to finish down 0.5% at 3232 points. Meanwhile the Hang Seng tried but failed to claw back its previous losses, ending with a scratch session at 21283 points. The daily chart had being showing a nice breakout with daily momentum well overbought but unable to breach the 23000 point level as it rolled over most of last week. Price action has now rolled over completely and through ATR support with momentum crossing into negative territory for a possible corrective phase:
Japanese stock markets also failed to build momentum with the Nikkei 225 eventually pulling back 0.3% to 27606 points. After bottoming out at the 25000 point level the recent positive correlation performance with Wall Street was helping lift price action back to the November highs, but remains unable to clear the 27500 point level. Daily momentum has reverted out of overbought mode and could be suggesting a slide back below the low moving average next:
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