Stock markets are up across the region as the PBOC cut the onshore reference rate sharply today, sending Yuan down to a new seven month low against USD. This kept the risk taking going while traders wait on this week’s FOMC meeting with tonight’s US CPI print presaging a possible pause. Japanese bourses are surging ahead to new historic highs while local stocks are still looking weak as the Australian dollar tries to get back above the 68 cent level.
Oil prices remain depressed with Brent crude holding just above the $72USD per barrel level while gold is trying to claw back its mid week losses, but unable to make a new weekly high at the $1960USD per ounce level:
Mainland Chinese share markets are lifting going into the close but the Shanghai Composite has barely moved, currently just above the 3200 point level while the Hang Seng Index is up nearly 0.5% to extend past the 19000 point level at 19493 points.
Japanese stock markets are pushing ever higher and higher with the Nikkei 225 up more than 1.8% to 33018 points as the USDJPY pair remains below the 140 level in a continued sideways move:
Australian stocks are putting in a minor positive session with the ASX200 closing just 0.2% higher at 7138 points. The Australian dollar is moving faster though, on a bender to get above the 68 handle in anticipation of a weak US CPI print, but be careful here:
Eurostoxx and S&P futures are lifting more than 0.7% going into the London open with Wall Street wanting to really break free here on the back of tech stocks as hopium is injected that the Fed will have a pause in its rate hikes.
The S&P500 four hourly chart is showing a desire to break above the 4400 point level after bursting through resistance at the 4300 area last week:
The economic calendar will start off with the closely watched Euro/German ZEW Sentiment Survey, then the big one – US core inflation/CPI for May.