Trump pulls a Johnson out and rattles commodity markets with huuge new tariffs on steel and aluminium, with stocks down across Asia today following a selloff on Wall Street. Bonds were relatively quiet, as were currencies as the reversal in USD strength moderated across the region. Stock markets are almost in full corrective phase now, given the lack of resolve in the recovery phase. Sell in March and go away?
The Shanghai Composite is down 0.4% going into the close, currently at 3258 points still unable to crack above key resistance at 3300. The Hang Seng Index is off a lot more, down 1.2% to 30630 points, barreling in to key support at 30000 as momentum remains negative on the daily chart:
S&P futures are barely holding after the cash market closed below the key 2700 point support level last night:
Japanese stocks fell the hardest again, this time embiggened by a much stronger Yen. The Nikkei 225 lost more than 2% to 21246 points, now in full corrective phase and almost back to its terminal low. The USDJPY pair is holding on just above the 106 handle after falling further in the morning on the back of last night’s selloff. Its almost back to the correction low which is where my target is for this move:
The ASX200 fell 0.7% or 44 points lower to 5929 points, remaining well below the psychologically important 6000 point level and setting up for accelerate falls if it goes below the 200 day moving average and 5900 points proper. The Aussie dollar has floated up slightly, like a dense poo after a kebab, almost touching the former support, now resistance level of the last couple of weeks. The downtrend line from the start of the week is the important level to cross tonight:
The economic calendar ends the week with a few events to watch out for, namely BOE Governor Carney giving a speech in London, followed by Canadian 4Q GDP.