by Chris Becker
Asian markets have moved to safe havens after the Manchester attack and a variety of political distractions in the Americas plus concern over Noble Group. Futures are pulling back while the USD is sold off as traders head for Yen and gold, while oil remains stable after its recent rise, waiting for the OPEC meeting on Thursday.
In China the Shanghai Composite continues its bad start to the week, down another 0.3% today at 3064 points, still unable to climb back above its once critical support level at 3100. In Hong Kong the Hang Seng Index is up slightly, only 0.2% or so to maintain last week’s high at just over 25000 points:
Japanese stocks retreated on the gain in Yen, with the Nikkei down 0.4% taking back its good start to the week yesterday and remaining well below resistance at 20,000. The USDJPY pair continues to fall, now dicing with the 111 level on the Yen safety bid as the low moving average and momentum on the four hourly chart both start to head south again. I’m watching last week’s low at the 110.60 level to come under threat tonight:
S&P futures are moderating on more Trump risk off attitude with the S&P nicely back to its pre-dip level where the 2400 point area will be heady resistance:
The ASX200 had a weak session, gapping up on the open before selling off throughout the day to be 0.2% lower at 5760 points. The iron ore threesome took back their previous gains while financials retreated with oil and gold stocks the only big winners on the ASX50.
The Aussie dollar is lifting quite higher here, getting a little ahead of itself to breach the 75 handle against USD for the first time since the start of the month. Momentum is overcooked on the four hourly and daily chart so I expect a small dip soon on mean reversion:
The data calendar tonight ramps up with a slew of preliminary manufacturing and services PMIs from both sides of the Atlantic, plus new home sales for April in the US.