Absence of economic catalysts overnight coupled with some hesitation regarding tonight’s US CPI print kept the buyers at bay on most risk markets with Wall Street pulling back again, dragging European equities down in futures. Currency markets were more sanguine as they get ready for the inflation print with the Australian dollar rolling over again down to the 65 cent handle.
US bond markets saw a small drop in yields again with the 10 year Treasury almost crossing below the 4% level while oil prices pushed higher on the EIA inventory reports with Brent crude pushing above the $87USD per barrel level for a new monthly high. Gold failed to turn its short term reprieve following Friday’s NFP print into anything sustainable and fell sharply back to the $1915USD per ounce level.
Looking at share markets in Asia from yesterday’s session with mainland Chinese share markets fell on the poorer than expected inflation print with the Shanghai Composite eventually closing 0.5% lower at 3242 points while in Hong Kong the Hang Seng Index was down a little at one stage before closing nearly 0.3% higher at 19246 points.
The full text of this article is available to MacroBusiness subscribers