The fallout from Friday night’s terrible – or beautiful depending on your alternative facts – US jobs print has seen most Asian share markets come back slightly while Wall Street looks set to lick its wounds on the open tonight. The USD remains on the run after falling sharply against the majors on Friday night but we could see a rebound as the Federal Reserve is not certain to cut interest rates as US inflation remains sticky due to the tariffs. The Australian dollar is trying to get back above the 65 cent level after reversing course on Friday but faces an RBA likely to cut rates at the next meeting.
Oil markets are failing to hold on to their recent breakout with Brent crude heading below the $7USD per barrel level while gold was able to hold onto its Friday night reversal gains, currently above the $3350USD per ounce level with strong momentum:
Mainland Chinese share markets are up strongly going into the close with the Shanghai Composite up more more than 0.5% to almost get back above the 3600 point level while the Hang Seng Index has put on nearly 1% after retreat last week closing just below the 25000 point level. Japanese stock markets are the odd ones out with the Nikkei 225 closing more than 1% lower to close at 40311 points while the USDPY pair has gapped up slightly over the weekend after slumping on Friday night to just below the 148 level:
Australian stocks were unable to make any headway with the ASX200 closing dead flat to remain below the 8700 point level while the Australian dollar is trying to get back to the 65 cent level against USD after the bad NFP print on Friday:
S&P and Eurostoxx futures are up 0.5% or so going into the London session however the S&P500 four hourly chart shows the market extremely oversold after Friday night’s rout so watch for a potential rally here on hopium:
The economic calendar starts the trading week with US factory orders for July.