A very mixed trading session across stock markets in Asia today due to the fallout of the overnight US CPI print which came in much hotter than expected which spiked the USD but more importantly is seeing bond markets selloff across the world. The Australian dollar went down over 100 pips overnight to the 65 cent level but managed to lift slightly this afternoon.
Oil prices are holding firm after absorbing overnight volatility with Brent crude still well above previous weekly resistance at the $90USD per barrel level while gold is having a very minor slowdown, currently at the $2336USD per ounce level:
Mainland and offshore Chinese share markets are now going the other way with the Shanghai Composite up more than 0.3% while the Hang Seng Index is in reversal, down 0.3% to 17086 points. Japanese stock markets were also off with the Nikkei 225 down 0.4% at 39418 points with the USDJPY pair holding on to its gains from overnight, holding just above the 153 level:
Australian stocks didn’t do too bad in relative terms, with the ASX200 closing just 0.4% lower at 7813 points while the Australian dollar is trying to lift itself off the floor after the big reversal overnight, hovering just above the 65 cent level:
S&P and Eurostoxx futures are still fairly flat as we head into the London session with European shares not likely to rise on the open while the S&P500 four hourly chart shows price action still in a technical downtrend as it stalls out above the 5200 point level:
The economic calendar does not stop tonight with the latest ECB meeting, followed by the US PPI print and more Fed speeches.