A bit of window dressing around end of month trading combined with the release of the latest US PCE estimates that came in on target left risk markets a little unsettled overnight as European stocks pulled back slightly while Wall Street finished slightly down as well. The USD came back against some of the major currency pairs as ECB officials talked up the weakening European economy with Euro giving up most of its recent gains while the Australian dollar was unchanged at the mid 64 cent level having absorbed the weaker than expected CPI print.
US bond markets were relatively stable with the 10 year Treasury almost unchanged at the 4.1% level while oil prices were more buoyant with Brent crude breaking out to almost hit the $88USD per barrel level. Gold fell back slightly but is still holding on to its recent gains at a new three week at the $1940USD per ounce level.
Looking at share markets in Asia from yesterday’s session with mainland Chinese share markets fell going into the close with the Shanghai Composite down 0.5% to 3120 points while in Hong Kong the Hang Seng Index couldn’t do any better, closing down 0.5% to 18382 points.
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