More hesitation on risk markets as the weekend news of increased tensions on Chinese and US trade, including more off the cuff tariff announcements from the TACO-in-Chief unsettles the new start to the trading month. Currency markets area again winding up strength against the USD in response with the Australian dollar breaking out and accelerating above the mid 64 cent level.
Oil markets are lifting despite the announced OPEC production increases with Brent crude now above the $64USD per barrel level while gold is making good on USD weakness to further consolidate above the $3300USD per ounce level:
Mainland Chinese share markets were closed for a holiday while the Hang Seng Index has slumped some 1.6% to break below the 23000 point level. Japanese stock markets are also on the backfoot with the Nikkei 225 down 1.2% to 37428 points while trading in the USDPY pair has seen a swift retracement back below the 144 level:
Australian stocks were unable to stand above the rest of the region and had a mild setback with the ASX200 closing 0.2% lower at 8414 points while the Australian dollar has lifted above the mid 64 cent level:
S&P and Eurostoxx futures are down more than 0.5% going into the London session with the S&P500 four hourly chart shows an in ability to return to the recent highs near the 6000 point level as short term momentum and price action point to a bearish head and shoulders setup:
The economic calendar starts the new trading week and month with the latest US ISM manufacturing PMI print.