Asian share markets have foregone their recent bullish mood with the late selloff on Wall Street not helping risk spirits as Japanese shares lead a selloff amid a much stronger Yen. The Australian dollar remains well above the 67 cent level after bouncing back from some temporary USD strength following the recent UK and US core inflation prints.
Oil prices are trying to push higher on Red Sea tensions as Brent crude sits inches above the $79USD per barrel level while gold is in another pause phase, remaining just above the $2040USD per ounce level:
Mainland Chinese share markets are trying to bounceback but the Shanghai Composite remains well below the 2900 point barrier, putting in another scratch session while in Hong Kong the Hang Seng Index is also treading water, currently at 16599 points. Japanese stock markets are the biggest losers in the region however with the Nikkei 225 finishing 1.7% lower to 33112 points while the USDJPY pair has broken below the 143 level:
Australian stocks took a relatively small hit with the ASX200 closing nearly 0.6% lower to almost retrace below the 7500 point level, closing at 7504 points while the Australian dollar bounced back from its overnight flop to almost get above the 67 cent mid level but it is slowing down going into the London session:
S&P and Eurostoxx futures are hovering at their recent lows going into the London open with European stocks likely to start a lot lower as they play catchup to the Wall Street selloff. The S&P500 four hourly chart shows a breakdown from overnight back to last week’s high at just below the 4800 point level with short term momentum extremely oversold:
The economic calendar will mainly focus on the final Q3 US GDP print later tonight.