Equity markets in Asia are somewhat bullish although the latest softish CPI print kept Australian stocks and the dollar steady, despite further calls of cuts from the RBA. The USD is trying to clawback lost ground but its really all about the Yen at the moment as the BOJ indicates some hawkish positioning around their own domestic inflation numbers.
Oil markets have steadied after their recent correction with Brent crude now trading just below the $67USD per barrel level while gold is trying to fight back the trend, moving back to the $3330USD per ounce level:
Mainland Chinese share markets are up again in afternoon trade as the Shanghai Composite lifts more than 0.6% to push further above the 3400 point level while the Hang Seng Index has gained another 1% to extend above the 24000 point level. Meanwhile Japanese stock markets are doing well despite some noise from the BOJ with the Nikkei 225 up just 0.3% with the USDPY pair finding a little bit of life around the 145 level:
Australian stocks couldn’t maintain their rebound with the ASX200 closing dead flat at 8474 points while the Australian dollar didn’t move much on the latest softer than expected inflation print, hovering just below the 65 handle this afternoon:
S&P and Eurostoxx futures are moderating going into the London session with the S&P500 daily chart showing the market clearly overextended but still turning bad news into outsized returns after breaking right through the 6100 point level:
The economic calendar quietens down tonight with new US home sales and some private oil data.