More optimism across Asian stock markets after a very poor trading week due to the Israeli/Iranian conflict across the Middle East, with a weekend bid in risk that is seeing USD retreat slightly while most stocks are rising despite the tech correction on Wall Street. Earnings season may stall any recovery if the inflationary mood in the US continues. Bond markets are looking to pull back on yields slightly on the open tonight with the USD still having a safe haven bid, although the Australian dollar is trying to recover above the 64 cent level.
Oil prices are seeing more volatility which is to be expected with Brent crude retracing sharply below the $87USD per barrel level while gold is also having a weaker session again today, almost falling back to last week’s lows above the $2350USD per ounce level:
Mainland and offshore Chinese share markets are again in divergent mode with the Shanghai Composite off by 0.7% going into the close while the Hang Seng Index has gained nearly 2% to 16530 points. Japanese stock markets are having a solid rebound as well with the Nikkei 225 finishing exactly 1% higher at 37438 points with the USDJPY pair again ready to breakout here above the mid 154 level:
Australian stocks had a very solid up session with the ASX200 finishing 1% higher at 7649 points while the Australian dollar is trying to get off the floor, coming back above the 64 cent level as it struggles against the safe haven bid in USD:
S&P and Eurostoxx futures are up slightly this afternoon as we head into the London session with the S&P500 four hourly chart still showing price action in a small correction, trying to find a bottom here at the 5000 point zone:
The economic calendar starts the week with another fairly empty schedule, with a few ECB speeches and consumer confidence prints but not much else.