by Chris Becker
Are we moving out of the ZIRP or NIRP zone and actual positive interest rates? That’s what has the market spooked after the central banker fest in London overnight saw comments fester through bond markets (which matter the most!) with yields soaring, pulling stocks down in the process. Outside Stupidville (aka Australia) and coupled with the ongoing cyber-attacks the selloff continued in the Asian session today, setting up for some potential breakdowns tonight.
In mainland China the Shanghai Composite is down 0.5% to 3173 points, where its just holding above local resistance at the 3150 point level. The Hong Kong based Hang Seng Index is similarly off, down 0.6% to 25667 points, still hovering above ATR support but again unable to get above the 26000 resistance level again:
Even though the Yen weakened through the session, Japanese stocks still fell as the cyberattack fallout continued, with the Nikkei 225 closing 0.4% lower to take back yesterdays gains but remain above previous resistance at 20,000 points. The USDJPY pair is continuing to hit its straps, building above the 112 handle and remains on target for 114 or so:
S&P futures are cautious going into the London open but check out that wedgie bearish wedge wedge!
The ASX200 was the odd man out today, rallying! The local market finished 0.7% higher to 5755 points with a solid bounce in financials helped once again by the trio of big iron ore stocks. Yet again, short positions are foiled as the market hovers just above that 200 day moving average line.
The Aussie dollar is also holding steady after some heavy selling whenever it tries to breach the 76 handle against USD. Price remains below ATR resistance and just on the trendline from last weeks low. If it can hold here, the next target is weekly resistance at the 76.40 level:
The data calendar tonight includes a trio of important US releases, starting with the advanced goods balance, pending home sales and DOE crude oil inventories.