Asian share markets have fallen across the region although Chinese shares remain resilient in the wake of the selloff on Wall Street overnight on a broader “America-off” strategy by all risk markets. Gold is heading higher faster while the USD is losing ground against all the majors yet again. Oil prices remain in flux with the Iranian situation while the Australian dollar continues to lift off support at the 67 cent level.
Brent crude remains steady just above the $64USD per barrel level while gold has punched well above its weekend gap to almost crack the $4900USD per ounce level – is it $5000 next? I’m sure lots of institutions and investors would rather hold gold than US Treasuries now:
Mainland Chinese share markets are up slightly in the afternoon session with the Shanghai Composite gaining 0.3% to stay above the 4100 point level while the Hang Seng Index is off a little bit at 26450 points. Japanese stock markets are still in retreat with the Nikkei 225 down more than 0.5% to extend below the 53000 point level while Yen is steady against USD in the wake of the election call with the USDPY pair just above the 158 level:
Australian stocks are not doing well either with the ASX200 down 0.3% to 8782 points while the Australian dollar is trying to extend above the 67 cent level after being anchored at support below but is losing short term momentum:
S&P futures are unsteady but look like sending Wall Street down further with the S&P500 four hourly chart showing a mini correction underway but has some support at the 6800 point level:
The economic calendar is relatively quiet tonight with all eyes on Davos in Switzerland. Something big is brewing there, going by Canadian PM Mark Carney’s brilliant speech earlier today. I can feel it in the air…
Please watch his speech in full, just wish we had some real leaders like him down under and in NZ (I think Americans would settle for a leader who has read a book):