Asian stock markets are not liking the new trading week but have absorbed the weekend volatility and the selloff from Wall Street on Friday as risk appetites remain tenuous.
The USD remains quite strong against most of the majors including Pound Sterling and Euro despite the Ruzzian ructions as the Australian dollar can’t get back above the 67 cent level.
Oil prices are holding on to their late Friday night snapback but looking tenuous here with Brent crude just holding at the $74USD per barrel level while gold is in a similar position, still struggling after a series of low sessions as it gapped slightly higher over the weekend to just above the $1920USD per ounce level:
Mainland Chinese share markets reopened after a long weekend with the Shanghai Composite dropping more than 1.3% lower to 3154 points while the Hang Seng Index had a smaller loss, down nearly 0.5% to the 18801 point level as the selling continues.
Japanese stock markets were able to hold on due to a weaker Yen with the Nikkei 225 only falling about 0.2% lower to 32724 points with the USDJPY pair gapping slightly lower but still holding well above the 143 level:
Australian stocks had another small pullback with the ASX200 closing nearly 0.3% lower at 7078 points. The Australian dollar gapped lower over the weekend but hasn’t retraced further into the Friday lows to hold just below the 67 handle as short term momentum remains quite negative:
Eurostoxx and S&P futures are drifting lower as we head into the London open with the S&P500 four hourly chart holding below previous ATR support at the 4400 point level where this is looking ominous as short term momentum remains oversold:
The economic calendar starts the week with the closely watched German IFO survey, then an important speech from ECB President Lagarde.