Asian stock markets are mixed as Chinese mainland markets return into sour risk sentiment following last night’s Federal Reserve rate rise amid concern over the regional bank contagion in the US. The USD is oscillating against the majors with Yen safe haven buying dampened by a lack of domestic traders while the Australian dollar remains somewhat firm after the recent surprise rate rise by the RBA but is still failing to burst through the 67 cent level. Meanwhile oil prices are still depressed with Brent crude meandering around the $73USD per barrel level while gold is holding on to its above the $2000USD per ounce level despite some intrasession volatility:
Mainland Chinese share markets have reopened from their long May Day holidays with the Shanghai Composite up 0.7% to 3348 points while the Hang Seng has lifted nearly 1% to close at 19892 points. Japanese stock markets are also closed for the rest of the week with thin trading in the USDJPY pair as it breaks down to the 134 level, fully retracing its recent epic breakout:
Australian stocks remain under a lot of pressure as the RBA wants to engineer a recession with the ASX200 closing with a scratch session at 7185 points. The Australian dollar surge following the meeting is still oscillating around a point of control at the mid 66 cent level as it fails to get back above the 67 handle or make a new high:
Eurostoxx and S&P futures are slowly inching up following last nights ructions over the latest rate rise from the Fed as the S&P500 four hourly chart shows price action trying to recover at the 4100 point area. The psychological level at 4200 points is now a distant memory:
The economic calendar will now await the ECB interest rate meeting.