Macro Afternoon

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A generally positive session across the board for Asian stocks starting the new trading week, although local stocks took a breather. Chinese authorities haven’t changed their lending rates or signalled further stimulus while volatility regarding the US debt ceiling impasse is still threatening overnight stocks. The Australian dollar is still quite depressed, continuing at its recent weekly low around the mid 66 cent level.

Oil prices are pulling back slightly from their Friday night hesitant moves, with Brent crude just below the $75USD per barrel level while gold is trying hard to hold onto its snap rally before the weekend, still quite below the key $2000USD per ounce level.

Mainland Chinese share markets have taken back some of their early gains but look like closing higher with the Shanghai Composite up 0.3% at 3295 points while the Hang Seng is over 1% higher but still well shy of the 20000 point level, currently at 19687 points. Japanese stock markets are still the best performers, extending into the 1990 closing levels with the Nikkei 225 lifting more than 0.7% higher at 31081 points with the USDJPY pair steadying after its Friday night pullback below the 138 handle.

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