Asian share markets are somewhat mixed yet again traders try to decipher where the battle lines are being drawn in the ongoing trade wars started by the increasingly isolated USA. The USD is trying to fight back but is seeing continued weakness against Euro and Pound Sterling with a mild bounceback in Yen this afternoon, with the Australian dollar failing to get back above the 63 cent level after recently making a new monthly low.
Oil markets are trying to recover with Brent crude now lifting above the $70USD per barrel level while gold has continued its bounceback above the $2900USD per ounce level with momentum getting back to overbought settings in the short term:
Mainland Chinese share markets have moved sharply lower in afternoon trade with the Shanghai Composite down nearly 0.9% while the Hang Seng Index has pulled more than 1% to the 23300 point level. Japanese stock markets however are on the rise again with the Nikkei 225 up nearly 0.3% to close at 36888 points while the USDPY pair has given up its recent gains to push back below the 148 level:
Australian stocks had another selloff with the ASX200 closing nearly 0.5% lower at 7749 points while the Australian dollar has held on but is finding too much resistance at the the 63 cent level while it barely respects support just below:
S&P and Eurostoxx futures are trying to stabilise but seem to be heading lower as we head into the London session with the S&P500 four hourly chart showing this breakdown ready to go below the 5500 point level as the Trump dump correction continues:
The economic calendar includes the latest US PPI print and weekly initial jobless claims.
