Macro Afternoon

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A mixed start to the week as Asia reacts to the surprise US government shutdown with only Chinese stocks advancing. Currency markets were relatively stable with the Aussie dollar remaining under 80 cents vs USD while oil lifted slightly.

In mainland China the Shanghai Composite has continued its advance above resistance at 3400 points, now up 0.3% to 3498 points. The Hang Seng Index is also up the same percentage to 32356 points as this hot trend continues without any signs of stopping – apart from way overbought momentum:

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S&P futures are flat in reaction to the shutdown, but price is still well above the trendline here. The BTFD crowd will step in if 2800 is threatened:

Japanese stocks are mixed with the broader Topix up while the Nikkei 225 is down 0.2%, currently at 23758 points. The USDJPY pair remains on the mat and unable to overcome the series of lower highs from late last week as the four hourly chart below shows. The level to watch overnight is support at the 110.30 level:

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The ASX200 continues to be unable to make any headway and starts the week down 0.2% finally breaking through key psychological support at 6000 points to finish at 5992 points. I

The Aussie dollar is trying to get back above the 80 cent level vs USD, but is finding the going a bit slow here before volume returns later tonight:

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The economic calendar starts the week very quietly with a small series of Treasury auctions.