The latest Chinese inflation numbers were slightly higher than expected which has seen the potential for a BOC RRR cut next year move lower, also pushing mainland shares down as well. All other Asian markets are in the red as well with the risk complex awaiting tonight’s FOMC meeting to see what is in store with the Fed as they contemplate a hawkish cut. The USD is still holding somewhat firm against the majors with the Australian dollar maintaining its position above the 66 cent level.
Oil markets are getting unstable now with Brent crude drifting down to the $62USD per barrel level while gold is still hanging around the $4200USD per ounce level but has lost all its previous momentum:
Mainland Chinese share markets are seeing sharp selling with the Shanghai Composite down more than 0.7% to cross below the 3900 point level while the Hang Seng Index has continued its recent decline and lost more than 0.3% to 25346 points. Japanese stock markets are also seeing a mild selloff with the Nikkei 225 losing 0.3% at 50504 points with the USDPY pair stalling out after getting ahead of itself overnight where it almost blew past the 157 level:
Australian stocks are still processing the RBA positioning and waiting for Wall Street with the ASX200 losing 0.1% or so at 8577 points while the Australian dollar has stabilised well to hold above the 66 cent level against USD:
S&P and Eurostoxx futures are slipping again with the S&P500 four hourly chart showing this creeping trend that just can’t get back to the former highs as traders await the Fed meeting tonight for a catalyst:
The economic calendar includes the long awaited December FOMC meeting but also Bank of Canada with their monthly meeting.