As the bombs, missiles and threats are thrown around the Middle East like kids in a playground, risk markets are relatively stable following the entry of the US into the Israel-Iran war. The USD is gaining more strength against most of the undollars with the Australian dollar losing ground to head back to the 64 cent level while Yen is the most sold off.
Oil markets gapped higher, understandably enough, but not as much as expected with Brent crude trading above the $76USD per barrel level while gold is just holding as it floats around the $3400USD per ounce level:
Mainland Chinese share markets are up sharply in afternoon trade as the Shanghai Composite lifts more than 0.6% to almost get back above the 3400 point level while the Hang Seng Index has gained nearly 0.5% to be at 23647 points. Meanwhile Japanese stock markets are pulling back slightly in the wake of a much weaker Yen with the Nikkei 225 down only 0.2% to 38338 points while trading in the USDPY pair has seen a big move higher on USD strength to break through the 147 level:
Australian stocks were the worst in the region with the ASX200 closing 0.4% lower at 8474 points while the Australian dollar continues to lose its prior strong position as it retraces right back to the 64 handle amid the war tensions:
S&P and Eurostoxx futures have gapped down from the weekend although they are recovering somewhat going into the London session with the S&P500 four hourly chart wanting to get back above the recent highs at the 6000 point level:
The economic calendar includes a slew of flash PMI surveys on both sides of the Atlantic, plus a lot of EU and Treasury bond sales.