Asian share markets are still absorbing the outcome of last week’s volatility without a solid lead from Wall Street as the USD and bond yields continue their see-saw inversion. The still relatively high USD continues to weigh on risk sentiment as the Australian dollar has remained depressed just above the 65 handle.
Oil prices are pausing their recent breakout as Brent crude remains well above weekly resistance at the $85USD per barrel level while gold has dissipated somewhat after surging through the $2200USD per ounce level, currently just on the $2170 level:
Mainland and offshore Chinese share markets are trying to make a comeback after failing to get back on track recently with the Shanghai Composite closing slightly higher while the Hang Seng managed a full 1% bounce to close at 16636 points. Japanese stock markets were a bit more hesitant, with the Nikkei 225 putting in a scratch session at 40398 points while the USDJPY pair continues to steady at just below the mid 151 level:
Australian stocks were the worst performers with the ASX200 closing some 0.4% lower at 7780 points while the Australian dollar is just holding on above the 65 cent level after last week’s volatility:
S&P and Eurostoxx futures are barely holding on to their Friday night moves as we head into the London session with the S&P500 four hourly chart showing price action retreating below the 5300 point level with short term support about to come under threat:
The economic calendar ramps up with US durable goods orders and consumer confidence prints.