Another divergent day across Asian stock markets as we start a packed trading week with three major central banks having their respective meetings. Japanese stocks were the only positive in the region while Chinese equities fell over as the PBOC again strengthens the Yuan. The Australian dollar remains unchanged in a holding pattern, albeit looking very weak as we await the next CPI print with today’s underwhelming PMIs not helping.
Oil prices are finding new life as Brent crude pushes above the $80USD per barrel level while gold is holding on to its Friday night dip, steady here at the $1960USD per ounce level:
Mainland Chinese share markets are still in deflation mode with the Shanghai Composite about to finish 0.2% lower at 3161 points while in Hong Kong the Hang Seng Index has slumped, falling more than 2% to 18614 points.
Japanese stock markets however are lifting with the Nikkei 225 closing more than 1.2% higher at 32700 points while the USDJPY pair is still trying to convert its recent breakout above the 141 level into something more sustainable:
Australian stocks are putting in another flat session, with the ASX200 closing 0.1% lower at 7306 points. The Australian dollar is basically unchanged from its Friday night finish at just above the 67 handle as traders await this week’s CPI print with a new back to back weekly low possible here:
Eurostoxx and S&P futures are down 0.4% on the poor mood from Asia with the S&P500 four hourly chart still showing price action below the recent uptrend that failed to extend successfully above the 4600 point level which continues as staunch resistance:
The economic calendar starts the trading week with a slew of PMI’s, the main one to watch is German manufacturing.