Asian share markets are still somewhat mixed due to last nights US CPI print with temporary USD weakness now shifting back to strength against the majors as both Chinese and Japanese shares fail to find any positive momentum that was evident at the start of the trading week.
Oil prices are trying to recover after a steep fall overnight but Brent crude is about to test the $73USD per barrel level while gold has also failed to get back above the $2000USD per ounce level following the subdued recovery last week as it slides below the $1980 level:
Mainland Chinese share markets are back in the red with the Shanghai Composite back below the 3000 point barrier at 2987 points while in Hong Kong the Hang Seng Index has also lost ground, down 0.7% to currently be at 16252 points. Japanese stock markets remain unable to translate previous gains into anything sustainable with the Nikkei 225 putting in a scratch session at 32904 points while the USDJPY pair is steady at just above the 145 level, after a small rally in Yen overnight was pulled back:
Australian stocks were able to put in a modest session with the ASX200 lifting further above the 7200 point level to close 0.3% higher at 7259 points while the Australian dollar remains on the ropes at the the mid 65 cent level after last night’s CPI print took the wind out of its sails again:
S&P and Eurostoxx futures are again lifting higher going into the London open as the S&P500 four hourly chart shows support upgraded significantly since Friday night’s NFP print and subsequent 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 remains in high gear with the latest UK GDP data, then US PPI print for November to complete the inflation picture.