Macro Afternoon

A mixed end to the trading week here in Asia with only a handful of markets putting on any gains as risk appetite wanes going into tonight’s session. The bond market has been steady, although the selloff in Aussie 10 years continue with yields up another point, Treasuries are stable.

In mainland China the Shanghai Composite is putting in scratch session to end the week solidly above resistance at 3400 points, setting up for a potentially better move next week.  The Hang Seng Index is still advancing however, up 0.6% to 31288 points as this trend gets another upleg:

S&P futures continue to push higher as well as the market sets up for another great week:

Japanese stocks continued to fall as Yen strengthened throughout the session with the Nikkei 225 down 0.3% to 23654 points. The USDJPY pair has slumped again into the low 111 zone as Yen cannot find any sellers going into tonights US CPI print:

The ASX200 has ended its poor week with a scratch session, up only a few points to 6069 points. It was a very scrappy session with a good open but a failure to hold onto the gains as positions were wound back later in the afternoon.

The Aussie dollar pipped through the 79 handle ever so briefly before coming back to be just below its high moving average position on the four hourly chart. There’s nothing stopping the Pacific Peso here but momentum is suggesting a possible pullback:

The economic calendar ends the week with a couple big releases, namely the December US CPI and retail sales figures.


  1. … From the United Kingdom …

    Banks cut back consumer credit in fear of rising risks … UK Telegraph

    Banks are clamping down on credit cards and other unsecured lending as fears grow that the boom in household debt could turn into a bust that could destabilise the financial system and force consumers into bankruptcy.

    New figures from the Bank of England show banks cut back the availability of loans and rejected an increasing proportion of credit card applications in an effort to ensure they are giving only high-quality loans to customers who can afford the debt.

    It follows a series of warnings from Mark Carney that annual growth of 10pc in lending could leave borrowers overstretched and the banks vulnerable to a slump. … read more via hyperlink above …

    … from yesterday …

    The global bond rout has begun, leaving equities on borrowed time … AEP … UK Telegraph (behind paywall)