Asian stock markets are trying to calm down after the mid week rout following the Fitch US ratings downgrade but local stocks remain under the pump as recession fears mount. The USD is still firm going into tonight’s NFP jobs report but there has been a small bounce amid the majors with even the Australian dollar lifting up through the 65 cent level.
Oil prices are holding on to their recent gains despite a small setback overnight as Brent crude hovers above the $85USD per barrel level while gold is at least not falling any further, but has failed to clawback any of its recent losses as it hovers around the $1930USD per ounce level:
Mainland Chinese share markets are lifting again after the long lunch break with the Shanghai Composite up 0.5% or so at just under 3300 points while in Hong Kong the Hang Seng Index is bouncing back, up 1% to 19623 points.
Japanese stock markets remain hesitant with the Nikkei 225 up just 0.1% at 32128 points while the USDJPY pair has seemingly finished its short term dip as it retraces back to the 142 mid level:
Australian stocks are actually the worst in the region as the RBA signals potential recession with the ASX200 down more than 0.2% to be below the 7300 point level. The Australian dollar has bounced back slightly to just above the mid 65 cent level, but remains set in a downtrend:
Eurostoxx and S&P futures are rebounding as the S&P500 four hourly chart does show a potential bottom after threatening the key 4500 point level. The inability to get back above the 4600 point level before tonight’s NFP print however could result in a sharp rollover:
The economic calendar will focus squarely on tonight’s US jobs number – the non-farm payrolls for July.