by Chris Becker
The lack of progress and outright indignation with the release of the Paradise Papers over Trump’s tax reform meant risk hit a snag today in Asia, not helped by the “diplomatic” words of war regarding North Korea. Most Asian share markets retreated or barely scratched away as commodity prices also came off the boil slightly.
In mainland China the Shanghai Composite is just holding above 3400, barely up 1 point to 3015 where it needs to stay or there will a swift reaction to this potential false break. The Hong Kong based Hang Seng Index is off 0.3% to 28912 points. Note the tall tails above the blue candles here on the daily chart, a sign of selling pressure from on high:
S&P futures are sliding back slightly as this trend mean reverts:
Japanese stocks have slipped slightly as the euphoria around Trump’s trip wanes, with the Nikkei losing 0.1% to close at 22913 points. The USDJPY pair is still below the 114 handle after last nights selloff, indicating there’s still strength here but an unwillingness to go back above last weeks high:
The ASX200 is hanging on above 6000 points, but only just with a scratch session, up 2 points to 6016 as traders take a breather from all the excess of late.
The Australian dollar remains depressed here, barely holding on to the week and half long bottom at the 76.40 level against USD. If it breaks here we could be in for a rout as USD bidders move away from the Pacific Peso:
The data calendar continues overnight but very slowly with the DOE crude oil inventory count the only reason of note. Then in the wee hours of the morning, its the RBNZ cash rate meeting.