by Chris Becker
Stocks sold off across the region today with increased volatility over the Trump administration turmoil and a lower USD as a result. This has sent risk to safe havens like Yen, dropping Japanese stocks in the process, and government bonds with US and Aussie yields both dropping. Commodities remain mixed with oil prices dropping and gold stabilising.
In China the Shanghai Composite has slumped going into the close, finishing 0.3% lower to 3104 points, after yesterday breaching that once critical support level. In Hong Kong the Hang Seng Index has slipped another 0.2%, as the expected retracement continues to unfold from lofty heights:
Japanese stocks fell on the much stronger Yen with the Nikkei closing 0.5% lower, almost below its pre-breakout level at 19700 points. The USDJPY pair, after last night cracking below ATR support at the 113 handle is accelerating in its falls on the safe haven bid, down to 112.30 and looking set to hit the former low at 111.20 sooner rather than later:
S&P futures have reversed all of the previous gains as hot money goes straight to Treasuries as the impending impeachment calls build (thank Dog below!)
The ASX200 has slumped on the poor overnight lead and the nerves in Asia, closing down over 1% lower to well below my expectations at 5786 points. This takes out key support here and sets up for a wider corrective phase.
The Aussie dollar is bucking the weaker USD trend by staying just above the 74 handle against USD and unable to make traction above the 74.50 resistance zone:
The data calendar tonight includes mainly mid tier stuff including provisional CPI prints from Europe and a DOE oil inventory report for the ‘States.