by Chris Becker
A very slow start to the week for risk here in Asia with only the ASX200 putting on any gains as Bitcoin goes nuts above $10,000USD. This week will be jam packed with key economic data and an OPEC meeting, so expect volatility!
In mainland China the Shanghai Composite has had a weak start to the week, losing 0.8% to be at 3326 points, proving that the 3300 support line is a strong anchor. The Hang Seng Index has taken back its Friday gains, losing 0.5% to be at 29,507 points. Tellingly, its been unable to make a new daily high since that big breakout, so I’m watching the low moving average here at 29300 for a possible breakdown:
S&P futures gapped down slightly here in Asia, recovering slightly but still off the Friday highs:
Japanese stocks fell as the Yen firmed with the Nikkei down over 100 points or 0.45% to 22445 points, unable to make headway since its early November blowoff. The USDJPY pair did not gap down as expected, but is slowly melting going into the London session and just clinging above the 111 handle:
The ASX200 was the bright spot, surging on the open before falling back to reality in the afternoon, closing 0.2% higher to 5988 points, unable to climb above 6000 but at least a positive start to the week. The big four banks barely moved while mining stocks rallied, possibly in sympathy with the likely death of Adani given the Queensland election result.
The Australian dollar has rejected overhead resistance at the 76.20 level against the USD, falling down to but not through the 76 handle proper.This has all the hallmarks of a selloff, so one to watch tonight:
The data calendar starts the week quietly with US new home sales data for October.