Asian stock markets are having a quiet day after absorbing the stimulus boost on Chinese equities yesterday with only local stocks getting a move on after a larger than expected CPI print. The Australian dollar roundtripped but is still quite supportive here following the inflation surprise while other major currencies remain in hesitation mode waiting for the triple whammy FOMC/BOE/BOJ meetings, with the Fed the first cab off the rank later tonight.
Oil prices are holding on to their recent gains as Brent crude pushes beyond the $83USD per barrel level while gold is finally finding some life after hovering around its Friday night dip levels, currently pushing towards the $1970USD per ounce level:
Mainland Chinese share markets are down mid-afternoon with the Shanghai Composite looking to finish some 0.4% lower at 3217 points while in Hong Kong the Hang Seng Index has pulled back slightly after its epic 4% rise yesterday, down 0.5% at 19346 points.
Japanese stock markets have again finished flat with the Nikkei 225 closing at 32668 points while the USDJPY pair has deflated slightly again, still unable to convert its recent breakout above the 141 level into something more sustainable:
Australian stocks are the standouts today, with the ASX200 closing 0.8% higher at 7402 points. The Australian dollar has roundtripped through the mid 67 level post the CPI release this morning and is currently holding just above short term support here:
Eurostoxx and S&P futures are down 0.4% and 0.1% respectively as traders await tonight’s FOMC meeting. The S&P500 four hourly chart is showing price action hitting the recent weekly highs but wanting to retreat as the 4600 point level continues as resistance:
The economic calendar will first focus squarely on the FOMC Meeting tonight.