Not a good day for precious metals or crypto currencies as Asian share markets also remain in a dour mood after the poor showing on Wall Street overnight. The USD is strengthening again and holding back the Australian dollar which is struggling to get back above the 70 cent level despite a good trade print today.
Brent crude has retraced back to the $68USD per barrel level while gold has fallen swiftly below the $4900USD per ounce as it fails to get back on trend:
Mainland Chinese share markets are down sharply in the afternoon session with the Shanghai Composite moving 1% lower to cross back below the 4100 point level while the Hang Seng Index is off more than 1.3% to 26506 points. Japanese stock markets are pulling back as well with the Nikkei 225 down 1% to cross below the 54000 point level while Yen is losing ground again as the USDPY pair moves further above the 156 level:
Australian stocks were the best performers relatively speaking with the ASX200 down just 0.5% to 8879 points while the Australian dollar continues to just hold one post the RBA rate hike as it slips below the 70 cent level on continued USD strength as we await the end of week NFP print from the US:
S&P futures are failing to lift higher after last night’s pullback with the S&P500 four hourly chart showing a retracement back to the lower daily trend line that is now threatening support at the 6900 point level as the market fails to return to the recent highs:
The economic calendar will focus squarely on the BOE and ECB meetings tonight.
and some evening Chris Hedges and John Mearsheimer to lighten the mood……