Asian stock markets are red across the board as risk sentiment sours going into some very important inflation prints in the Northern Hemisphere tonight. Local stocks are off slightly as they lack direction from Wall Street which is again focused on the ridiculous debt ceiling debate in Congress. After absorbing a busy economic calendar that terminated in the April US jobs figures on Friday night, currency markets are moving to safety of USD again with the Australian dollar still holding tight well above the 67 cent level after absorbing last night’s Federal Budget. Meanwhile oil prices are unchanged from overnight in their attempt to bounceback from a depressed mood with Brent crude retreating slightly below the $77USD per barrel level while gold is trying to take back its small Friday night correction as it sits just below the $2030USD per ounce level:
Mainland Chinese share markets are falling back going into the close with the Shanghai Composite down 1.5% at 3307 points while the Hang Seng has lost nearly 0.5% to remain well below the 20000 point level at 19741 points. Japanese stock markets are now playing catchup despite a weaker Yen, with the Nikkei 225 closing 0.3% lower at 29136 points with the USDJPY pair pulling away in late afternoon trade to climb above the 135 level as momentum builds into overbought readings:
Australian stocks were hesitant once again as local traders fail to find any direction with the ASX200 closing nearly 0.2% lower at 7255 points. The Australian dollar has moderated ever so slightly after its post NFP surge, retracing a little more below the 68 handle but still looking strong here:
Eurostoxx and S&P futures are moving slightly lower to retreat back to their Friday night gains as risk markets continue to rebalance following Friday night’s jobs print as sentiment weakens going into tonight’s inflation print. The S&P500 four hourly chart shows price action able to recover to the mid 4100 point area but the psychological level at 4200 points is the real target here or this was just a dead cat bounce:
The economic calendar will focus first on the all important German inflation print and then the more importanter US core inflation print.