The TACO in Chief is again threatening more tariffs on the EU just 24 hours after a yeah-nah decision by US courts to remove then reinstate the global tariffs, which of course is translating into a lot of hesitation on risk markets. This comes just after clear signs that a US recession is underway while the looming massive spending bill remains before Congress. With end of week and month witching sessions tonight we could see a big increase in volatility with currency markets oscillating back and forth against USD with the Australian dollar clinging on to the 64 cent level.
Oil markets are slowly deteriorating after recently losing momentum with Brent crude now below the $64USD per barrel level while gold is failing to consolidate as it remains depressed around the $3300USD per ounce level:
Mainland Chinese share markets are pulling back slightly in the afternoon session with the Shanghai Composite down 0.3% while the Hang Seng Index has slumped some 1.5% to almost break below the 23000 point level. Japanese stock markets are also on the backfoot with the Nikkei 225 down 1% to 38071 points while trading in the USDPY pair has seen a retracement back below the 144 level:
Australian stocks were the odd ones out and managed to eke out a lift higher with the ASX200 about to close nearly 0.3% higher to 8432 points while the Australian dollar has steadied somewhat just above its former point of control around the 64 cent level:
S&P and Eurostoxx futures are steadying going into the London session with the S&P500 four hourly chart shows a potential return to the recent highs near the 6000 point level as short term momentum remains somewhat neutral:
The economic calendar finishes the week and month with the latest US PCE core spending figures.