Not quite a bath of blood here in Asia, but most stock markets retreated today, the ASX200 the only standout. Reaction to Trump’s State of the Uniom speech has been muted with Treasury yields finally slipping after several days of gains due to the bond rout. Risk is prepositioning for the FOMC and NFP this week.
In mainland China the Shanghai Composite is falling again, closing nearly 0.4% lower to 3473 points. The Hang Seng Index has paused its own selloff however putting in a scratch session to finish at 32587 points, still above tentative support at the 32000 point level:
S&P futures have firmed here slightly after Trump’s first State of the Union speech with small support building at the 2820 zone. BTFD?
Japanese stocks continue to feel the pinch with the Nikkei 225 down 0.8% to 23098 points, confirming a break below its own trendline. The USDJPY pair continues to falter here in a slow melt below the 109 handle but is yet to make a new low for the week:
The ASX200 actually closed in the green, closing 0.2% higher in a positive reaction to the CPI print to finish at 6037 points. The Aussie dollar is finding lots of support at the moment as you can see on the four hourly chart below, whenever 80.50 is touched, its filled immediately! The key area to watch is the 81 handle or 81.10 for a signs of a breakout:
The economic calendar continues its focus in Europe again, with German unemployment for January the main one for Euro watchers, while we get Canadian GDP in between the FOMC meeting decision in the wee hours of the morning.
Turn the boobtube off tonight and step outside to watch the super blue blood moon!