Asian markets are generally lower as the Trump-Xi summit concludes with some interesting reactions across other risk markets as well to the possibility of a trade deal – but hold the cheese and get ready for another TACO trade! The BOJ held fire at today’s meeting sending the Yen lower while other undollars are trying to get back on track after last night’s Fed cut and wait approach sent a bit of a shockwave through currency land.
Oil markets are failing to hold on to their recent breakout with Brent crude pulling back to the $63USD per barrel level while gold is also struggling at the $3970USD per ounce level but is holding above support at the $3900 level:
Mainland Chinese share markets are falling going into the close with the Shanghai Composite down more than 0.5% to just retreat below the 4000 point barrier while the Hang Seng Index was closed for a holiday. Japanese stock markets are slipping slightly as well with the Nikkei 225 down nearly 0.3% at 51147 points while the USDPY pair has seen a small lift higher to almost get back above the 153 level:
Australian stocks are putting in more losses with the ASX200 closing nearly 0.5% lower to 8889 points while the Australian dollar has stabilised after a volatile session overnight to just below the 66 cent level against USD as rate cut expectations vanish:
S&P and Eurostoxx futures are steadying but seeing increased volatility as we head into the London session with the S&P500 four hourly chart showing the market holding on for now above the 6900 point level:
The economic calendar is packed tonight with German unemployment and inflation figures, then the latest ECB meeting followed by the latest weekly US initial jobless claims.