The post Trump pot shot reaction on risk markets has been mixed with the USD climbing while bond markets have sold off slightly with a 5 point immediate rise in 10 year Treasuries. Today’s Chinese GDP print came in lower than expected while the CCCP has its Third Plenum meeting – not good timing! The Australian dollar has hit a six month high as it extends above the 67 cent level.
Oil prices have slipped over the weekend with Brent crude retracing below the $85USD per barrel level while gold is trying to match its previous high, currently floating above the $2400USD per ounce level:
Mainland Chinese share markets are flat in reaction to the GDP print with the Shanghai Composite up only a handful of points while the Hang Seng Index is down nearly 1.5% to 18025 points. Meanwhile Japanese stock markets were closed for a holiday and thus trading in the USDJPY pair was muted with a very small weekend gap higher on the slightly stronger USD but still looking very much in trouble here:
Australian stocks were the best in the region with the ASX200 gaining over 0.7% to crack the 8000 point level, closing at 8017 points while the Australian dollar is holding steady above the 67 cent level, wanting to advance on to its recent breakout:
S&P and Eurostoxx futures are down 0.5% or so as we head into the London session with the S&P500 four hourly chart showing price action hesitating around the point of control at the 5700 point level with volatility rising:
The economic calendar starts the new week slowly with a few speeches from Fed members and Chair Powell to watch out for.