Its all about Japan today as the latest inflation figures come in hot, sending a flurry of activity across the Japanese government bond market and Yen sharply lower as the BOJ indicates more rate rises are needed. Other Asian share markets are doing well although local shares are still flopping around due to the latest rate cut that wasn’t really a rate cut from the RBA with the Australian dollar retracing slightly below the 64 cent level.
Oil markets are barely moving despite some OPEC promises about production cuts with Brent crude drifting around the $76USD per barrel level while gold is failing to push higher above the $2900USD per ounce level after a violent snapback on Friday night as momentum drifts sideways:
Mainland Chinese share markets are higher in afternoon trade with the Shanghai Composite up more than 0.7% to well above the 3300 point level while the Hang Seng Index is surging ahead on all cylinders, almost lifting 3% to 23252 points. Japanese stock markets are trying to get back on track after closing lower in the previous session amid the latest inflation print but the Nikkei 225 is dead flat while trading in the USDPY pair has seen a sharp bounce above the 150 handle on the hot inflation print:
Australian stocks are continuing their post RBA retracement with the ASX200 closing more than 0.3% lower at 8296 points while the Australian dollar has steadied after breaking out above the 64 cent level with resistance building here:
S&P and Eurostoxx futures are heading slightly lower as we head into the London session with the S&P500 four hourly chart showing the breakout brewing above the 6100 point level turning into a rounding top as momentum falls over:
The economic calendar includes a slew of flash PMIs across both sides of the Atlantic and then US home sales.