Asian stocks have not translated the firm gains on Wall Street overnight, with falls across the region as currency markets shake out a recently weaker USD. A stronger Yen and Aussie have pushed down their respective bourses, while gold remains depressed.
The Shanghai Composite gave up its previous gains to fall about 0.7%to 3192 points after recently getting out of the shadow of very strong overhead resistance at 3200. The Hang Seng Index was closed today and probably for good reason as futures are indicating a pullback in line with other Asian marketS:
S&P futures are slightly here on low volume here going into the European session, with a mild pullback from last nights surge probably on the cards:
Japanese stocks were pushed around due to the weaker USD and hence stronger Yen. The Nikkei 225 fell back about 0.15% to get back below 23000 points, currently at 22967. The USDJPY pair has fallen to the low end of the moving average channel, just below the 111 handle in an overdue pullback as momentum was overcooked:
The ASX200 was the worst in the region, confirming its double bearish top on the daily charts, falling 0.7% to 6041 points with key support at 6000 even now under stress. The Aussie dollar is flying high here on short covering just below the 76 handle, but this is way overdone and ripe for a violent pullback:
The economic calendar is UK-centric tonight with the BOE Governor Carney in a roundtable talk with other officials that will be worth watching, along with some UK government financial reports.