Asian share markets are having a rough start to the trading week as the combination of lower trading volumes heading into the end of the calendar year combined with a lot of movement expected around central bank meetings this week increase volatility across the complex. Yen is up against USD on strong data with a rate hike by the BOJ expected this week while the Australian dollar is slightly weaker but holding its own above the 66 cent level.
Oil markets remain unstable with Brent crude almost drifting below the $61USD per barrel level while gold is firming above the $4300USD per ounce level as it gains more upside momentum:
Mainland Chinese share markets are seeing only minor selling with the Shanghai Composite down 0.2% to stay well below the 3900 point level while the Hang Seng Index has reversed its recent gains to fall more than 1% to stay below the 26000 point level. Japanese stock markets are also seeing a solid selloff with the Nikkei 225 down more than 1% at 50172 points with the USDPY pair also down significantly to almost cross below the 155 level:
Australian stocks fell back in afternoon trade as the Santa Rally was stopped in its tracks with the ASX200 losing 0.7% to 8635 points while the Australian dollar has stabilised around its Friday night finishing point just below the mid 66 cent level against USD:
S&P and Eurostoxx futures are gapping higher after Friday’s significant pullback with the S&P500 four hourly chart showing a possible fill and back to last week’s breakout but note volatility is rising as trade volumes reduce for the Xmas break:
The economic calendar is relatively quiet tonight with Canadian inflation and some US Treasury auctions.