by Chris Becker
A sea of red across Asian bourses today with a poor response to last night’s selloff on transatlantic stocks. The USD remained strong, particularly against Australian dollar while oil, gold and other commodities were generally stable.
The Shanghai Composite is sliding downwards after the long lunch, off 0.3% going in the close at 3106 points with the Hang Seng worse again, off nearly 1% in sympathy with Korean stocks which are under threat due to steel and tech stock earnings. The Hang Seng is setting up for a big breakdown here as it threatens key support at 23000 points on the daily chart:
In Japan, the Nikkei has taken back yesterdays gain with a small loss of 0.3% which was softened by the Yen remaining weak against USD. The market has been overbought for awhile and is looking stretched here at the top end of its daily trend channel, so a pullback to former daily resistance at 17000 points would not be unexpected:
S&P Futures are down 0.1% with Eurostoxx and FTSE futures also off as we head into the London open.
For the ASX200, it was another big selloff day, down 1.2% to 5295 points as the arse falls out of the weak buying support holding up the stinking edifice that is Australian stocks. I said previously that once key support was broken we are going down to 5200 points- not that far away now is it? The reporting season so far has not impressed to say the least.
The Aussie dollar has been falling throughout the session, currently at 76.30 in what looks like a deceleration going into the London session for a possible swing long play:
The data calendar tonight ramps up with UK third quarter GDP print to act significantly on Pound Sterling, while in the US its durable goods orders for September, plus pending home sales. All important prints coming into the last couple of weeks before the US Presidential election..