Twin inflation reports in Europe and no-longer Europe saw Euro and Pound Sterling hit hard overnight as the expectations came in lower, sending USD higher against other majors in sympathy with the Australian dollar now in the 67 cent range. Wall Street moderated but put in a positive session while European shares were all over the place with only the FTSE loving the lower Pound.
US bond markets retraced slightly despite the lack of catalysts with the 10 year falling back to the mid 3.7% level while oil prices tried to rally again on European macro concerns before losing that heat with Brent crude staying at the $79USD per barrel level. Gold held on despite against the stronger USD at just below the $1980USD per ounce level.
Looking at share markets in Asia from yesterday’s session with mainland Chinese share markets were still in deflation mode with the Shanghai Composite finishing dead flat just above 3200 points while in Hong Kong the Hang Seng Index was down more than 1% at one stage before recovering to only lose 0.3%, still well below the 19000 point level.
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