The slow start to the new trading week continues with most Asian markets putting in scratch sessions with tonight’s Federal Budget looming large on local stocks as they take a hit. The USD is still in a weak phase although both the Euro and Pound Sterling are struggling to lift going into the London open with a very busy economic calendar ready to up the intrasession volatility. The Australian dollar is barely holding on above the 66 cent level as it finds more resistance.
Oil prices are trying to stabilise after their recent sharp falls with Brent crude lifting above the $83USD per barrel level while gold was able to hold back the sellers after its own retracement from the Friday night gains to steady at just above the $2340USD per ounce level this afternoon:
Mainland Chinese share markets are seeing another small pullback with the Shanghai Composite down more than 0.2% while the Hang Seng Index is stalling its recent advance, currently down 0.1% to 19097 points. Meanwhile Japanese stock markets are the odd ones out, with the Nikkei 225 up 0.1% to 38222 points with the USDJPY pair still lifting here, about to cross the mid 156 level:
Australian stocks opened down and stay down through the day with the ASX200 off by more than 0.3% at 7722 points while the Australian dollar is also largely unchanged, barely hovering above the 66 cent level as it remains unable to breach the early May high:
S&P and Eurostoxx futures are flat lining as we head into the London session with the S&P500 four hourly chart showing price action still hesitating after its breakout above the 5200 point level:
The economic calendar ramps up with German inflation and UK unemployment followed by the closely watched ZEW Survey and a speech by Fed Chair Powell.