Risk markets in Asia are somewhat mixed in the last session of the trading week as they absorb the burgeoning bond troubles and the passing of the Trump regime’s tax bill in the House of Reps that looks to enshrine a permanent decline in the US fiscal position. In currency markets, the USD is back to losing ground with Yen firming again as the Australian dollar remains surprisingly robust above the 64 cent level.
Oil markets are trying to stabilise with Brent crude retracing back below the $64USD per barrel level again while gold is pushing higher after fighting back from its recent decline, now extending above the $3330USD per ounce level this afternoon:
Mainland Chinese share markets fell sharply in the afternoon session with the Shanghai Composite down 0.8% while the Hang Seng Index is treading water as it fails to push above the 24000 point level. Japanese stock markets are doing a lot better with a temporary weakening Yen with the Nikkei 225 up more than 0.3% to 37114 points while trading in the USDPY pair has seen a return back below the 144 level:
Australian stocks were able to swim along without much fuss with the ASX200 lifting just 0.2% at 8360 points while the Australian dollar has held around the mid 64 level to match its post RBA meeting move with markets keeping the Pacific Peso contained for now:
S&P and Eurostoxx futures are sliding back further going into the London session with the S&P500 four hourly chart still showing a slowdown here in short term momentum as price heads back down to the 5900 point level:
The economic calendar includes UK retail sales and US home sales.