Asian stock markets are mixed following the lacklustre Chinese inflation print with local stocks basically unchanged despite a strong lead from Wall Street overnight. Currency markets are watching tonight’s BOE interest rate decision before the US PPI print with USD basically unchanged following last night’s inflation print with the Australian dollar still holding well above the 67 cent level. Meanwhile oil prices are unchanged from overnight with Brent crude pushing slightly above the $77USD per barrel level while gold is still lifting after absorbing the inflation print well, now back at its Friday night position just above the $2030USD per ounce level:
Mainland Chinese share markets have slipped marginally following the domestic inflation print with the Shanghai Composite down 0.2% at 3313 points while the Hang Seng has lost nearly 0.5% to remain well below the 20000 point level at 19663 points. Japanese stock markets are also having scratch sessions in the wake of a stronger Yen, with the Nikkei 225 closing 0.1% lower at 29118 points with the USDJPY pair still depressed after its smackdown overnight in the wake of the US inflation print, just hovering above the 134 level:
Australian stocks were hesitant once again as local traders fail to find any direction with the ASX200 closing nearly 0.1% lower at 7251 points. The Australian dollar has moderated ever so slightly after its post US inflation print surge, retracing a little more below the 68 handle but still looking strong here:
Eurostoxx and S&P futures are moving higher with more confidence after a solid session overnight on Wall Street as risk markets continue to rebalance following Friday night’s jobs print and last night’s US inflation print. The S&P500 four hourly chart shows price action recover stronger above the mid 4100 point area but the psychological level at 4200 points is the real target here or this may turn into a dead cat bounce:
The economic calendar will first focus on the latest BOE meeting, then US PPI inflation and weekly initial jobless claims.