Asian stocks are mainly in the red as markets continue to react to volatility around European politics while both Japanese and Chinese PPI measures came in a little higher than expected, giving the Australian dollar a small leg up. All eyes will be on tonight’s US CPI print, followed by the FOMC statement and press conference.
Oil prices have risen marginally with Brent crude building on its post weekend gains to climb above the $82USD per barrel level while gold remains depressed as it hovers around the $2300USD per ounce level still reeling after its Friday night slump.
Mainland Chinese share markets are looking hesitant but slowly building in confidence near the close with the Shanghai Composite up by 0.2% while the Hang Seng Index is continuing its breakdown, down more than 1.4% to 17911 points. Meanwhile Japanese stock markets retraced their recent gains with the Nikkei 225 down more than 0.5% to 38903 points as the USDJPY pair holds steady above the 157 level:
Australian stocks have continued their slump with the ASX200 down nearly 0.5% to 7711 points while the Australian dollar has built upon its weekend gap gains to climb just above the 66 cent handle:
S&P and Eurostoxx futures are both up marginally as we head into the London session with the S&P500 four hourly chart showing price action holding well above the breakout level from last night as short term momentum remains well into overbought mode:
The economic calendar tonight will focus squarely on the latest US CPI print.