As a new trading month gets underway Asian equity markets are quite mixed across the region as Japanese inflation and Chinese manufacturing contraction concerns overshadow the potential invasion of Venezuela by the Trump regime. The USD is falling and gold rising among other undollars with chances of a cut by the Fed at its upcoming December meeting rising. The Australian dollar is still moving above the 65 cent level against USD although is slowing down on a possible risk off move.
Oil markets are steady but very weak with Brent crude drifting above the $63USD per barrel level on the Venezuelan imbroglio while gold is zooming back above the $4200USD per ounce level:
Mainland Chinese share markets are lifting in afternoon trade with the Shanghai Composite up 0.4% to be above 3900 points while the Hang Seng Index is up more than 0.8% to 26067 points. Japanese stock markets are losing ground however with the Nikkei 225 down more than 1.8% to get well below the 50000 point level with the USDPY pair falling back below the 156 level in a quick selloff:
Australian stocks are pulling back again with the ASX200 down 0.3% to 8583 points while the Australian dollar has continued to hold above the 65 cent level against USD over the weekend gap but is facing short term resistance at the mid 65 level:
S&P and Eurostoxx futures are building in volatility given the Venezuelan situation with the S&P500 four hourly chart showing a break below the Friday night closing position around the 6800 point level:
The economic calendar is relatively quiet tonight although there are quite a few Treasury and EU country bond sales, then the US ISM manufacturing PMI.