As a fresh week unfolds, global markets seem to tread cautiously, keeping a close watch on the recent undertakings in Asian economies. PBoC's modest rate cut decision has catalyzed a minor pullback in stocks across China and Hong Kong. In contrast, Japan's Nikkei shows modest gains, reflecting a divergence in Asian market sentiment. The offshore Chinese Yuan wavers but stays above last week's low against Dollar. In the currency sphere, Australian and New Zealand dollars are registering mild declines alongside the greenback. On the flip side, Canadian dollar, Euro, and Swiss Franc exhibit a modest uptick. However, any drastic movement in major currency pairs are yet to be seen, with almost all major pairs and crosses stuck inside Friday's range. Investors should gear up for a potentially subdued trading ambiance in the next couple of days, given the sparse economic calendar. Nevertheless, Wednesday promises some action with release of PMIs from pivotal economies and Canadian retail sales data. Undoubtedly, the week's crescendo will be the eagerly awaited annual Jackson Hole symposium, culminating in Fed Chair Jerome Powell's address. Technically, WTI crude oil recovers notably today and appears to have defended 78.72 near term support well on first attempt. The development keeps near term outlook neutral at worst, with prospect of resuming the larger rise from 63.67 through 84.91 resistance towards 90 handle at a later stage. However, firm break of 78.72 support, will argue that this rebound has completed, and bring deeper fall back to 74.74 resistance turned support, probably together with deterioration in risk sentiment elsewhere. In Asia, at the time o writing, Nikkei is up 0.61%. Hong Kong HSI is down -1.38%. China Shanghai SSE is down -0.38%. Singapore Strait Times is down -0.45%. Japan 10-year JGB yield is up 0.012 at 0.643. |