A few wobbles across Asian share markets with the catalyst of another potential rare earth trade deal between the Trump regime and Japan helped Yen strengthen against USD. The fallout from Friday’s not so firm US CPI print is keeping the USD down against most of the majors as expectation of a cut from the Fed builds with the Australian dollar holding well above the 65 cent level in today’s session.
Oil markets are trying to hold on to their recent breakout with Brent crude pulling back to the $65USD per barrel level while gold is continuing its overnight selloff as it breaks below the $4000USD per ounce level:
Mainland Chinese share markets are still doing well with the Shanghai Composite holding above the 4000 point barrier while the Hang Seng Index is unchanged at 26422 points. Japanese stock markets are pulling back slightly on the stronger Yen with the Nikkei 225 down 0.4% at 50297 points while the USDPY pair has reversed sharply through the 152 level:
Australian stocks were also off slightly as expected with the ASX200 closing 0.4% lower at 9019 points while the Australian dollar has continued its surge above the 65 cent level against USD:
S&P and Eurostoxx futures are climbing slightly making good on the previous surge on Wall Street as we head into the London session with the S&P500 four hourly chart showing the market breaking out above the 6900 point level:
The economic calendar includes German consumer confidence then the latest US Redbook and other secondary Fed releases.