Asian share markets are in mixed form as we start a new trading week as Yen sells off in the wake of a stronger USD following Friday nights US employment print – aka the non farm payroll report – with Chinese risk sentiment still dragging down the region while local shares are steady.
Oil prices are trying to rebound after some steep falls last week with Brent crude breaking above the $76USD per barrel level while gold has failed to hold fast above the $2000USD per ounce level following the subdued recovery last week from an epic breakout above the $2100USD per ounce level:
Mainland Chinese share markets were deeply in the red to start with but have recovered somewhat going into the close with the Shanghai Composite down just 0.2% to 2964 points while in Hong Kong the Hang Seng Index has lost significant ground with a near 2% loss to 16020 points. Japanese stock markets however are gaining ground after a poor session on Friday with Nikkei 225 up more than 1.4% to 32759 points while the USDJPY pair is building higher again as Yen sells off to breach the 145 handle on the weekend gap open:
Australian stocks were largely unchanged despite the positive lead from Wall Street with the ASX200 putting in a scratch session to remain below the 7200 point level at 7198 points while the Australian dollar is continuing its pullback from Friday night, gapping down to the mid 65 cent level and looking structurally weak again:
S&P and Eurostoxx futures have gapped significantly higher going into the London open as the S&P500 four hourly chart shows support upgraded since Friday night’s NFP print and subsquent rally. The 4600 point level is likely to become the new support level having played as resistance for so long as part of a horizontal continuation pattern that is now broken:
The economic calendar starts the week slowly as always after the latest non-farm payroll print with a series of Treasury auctions overnight and not much else.