Asian share markets are generally boisterous in correlation with the equally euphoric Wall Street which was able to swing a higher domestic inflation print into an increased probability of an interest rate cut by the Federal Reserve in September. Currency-land remains stagnant however with the USD losing out against most of the majors as Euro nearly lifts above the 1.17 handle while the Australian dollar is now in a better position after the RBA cut rates 25bps as expected yesterday to extend above the 65 cent level in afternoon trade.
Oil markets sold off all last week and continue to struggle to make any gains with Brent crude holding so far above the $66USD per barrel level while gold remains somewhat depressed after giving up its last Friday night gains, currently holding steady just below the $3350USD per ounce level:
Mainland Chinese share markets are lifting again going into the close with the Shanghai Composite pushing well above the 3600 point level while the Hang Seng Index is finally playing catchup as it launches nearly 2% higher to get back above 25000 points. Japanese stock markets are seeing a strong bid as well with the Nikkei 225 rising more than 1% to 42331 points while the USDPY pair has seen not much interest as it tries to steady just below the 148 level this afternoon:
Australian stocks were the poorest performers again this time due to the CBA Division of Megabank slumping, with the ASX200 falling 0.4% to 8842 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 lifting 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 as momentum goes into overdrive in the short term:
The economic calendar is quiet again tonight with some tertiary releases and a few Fed speeches to watch out for.