Asian share markets are seeing a strong bid led by Japanese markets as they return from their long weekend with traders all waiting in anticipation of tonight’s US CPI print that is now becoming as important as the jobs print on the economic calendar. Not much movement in currency-land with the RBA cutting rates 25bps as expected but the Australian dollar is holding firm right on or above the 65 cent level in afternoon trade but could face headwinds as London opens.
Oil markets sold off all last week but are moving into more supportive levels as the trading week gets underway with Brent crude holding so far above the $66USD per barrel level while gold remains somewhat depressed after giving up its Friday night gains, currently lifting slightly above the $3350USD per ounce level:
Mainland Chinese share markets are rising swiftly going into the close with the Shanghai Composite pushing well above the 3600 point level while the Hang Seng Index is treading water as it fails to get back above 25000 points. Japanese stock markets are closed for a holiday while trading in the USDPY pair has seen not much interest as it tries to steady around the 147 level this afternoon:
Australian stocks were the poorest performers relatively speaking, but were able to make some modest gains, with the ASX200 lifting 0.3% higher to 8872 points while the Australian dollar has held on just above the 65 cent level against USD despite or because of the long expected cut from the RBA:
S&P and Eurostoxx futures are falling slightly going into the London session with the S&P500 four hourly chart showing the market wanting to continue its rebound and return to the previous highs but momentum is waning in the short term:
The economic calendar will focus squarely on the latest US CPI print tonight – if it comes in hot, watch for firing of more numbers people by the Fanta Fuhrer! If its cold, everything is awesome and Fed Chair Powell will probably be fired for not cutting rates…