The uneasy start to the trading week continues as markets weigh up the recent EU and Mexican tariff letters from the Trump regime while also awaiting tonight’s US CPI print that is sure to define risk for the rest of the month. The USD was up slightly after the weekend gap but is stalling out although Euro and Pound Sterling are at weekly low. Meanwhile the Australian dollar is faltering again while Bitcoin has retraced somewhat from its recent new record high.
Oil markets are drifting slightly lower with Brent crude trading below the $70USD per barrel level while gold is trying to make a comeback after retreating just below the $3300USD per ounce level last week:
Mainland Chinese share markets are dropping on the mixed economic data with the Shanghai Composite down 1% going into the afternoon session while the Hang Seng is basically treading water to stay just above the 24000 point level. Meanwhile Japanese stock markets are not moving around much with all eyes on the bond market with the Nikkei 225 unchanged just below the 40000 point barrier as the USDPY pair stalls slightly above the 147 level again:
Australian stocks were the best in the region with the ASX200 up nearly 0.5% to breach the 8600 point level while the Australian dollar is holding somewhat steady after falling below the mid 65 cent level against USD:
S&P and Eurostoxx futures are down slightly going into the London session with the S&P500 daily chart showing the market clearly overextended but holding just under the 6300 point level:
The economic calendar will focus squarely on the US CPI print tonight.