A selloff all across Asian markets today as we seem to be tripping over history with a repeat of the 2012 Italian sagas. There’s more action outside stocks, with bond markets reacting across Europe after a big move on Italian debt, with US Treasury yields spiking back above 2.8% and the USD gaining strength everywhere.
I said yesterday that the Shanghai Composite had shown its hand, and today that’s been confirmed with a big rout. The market sold off more than 2% going straight down to terminal support at 3000 points, closing at 3041 – not looking good! The Hang Seng Index followed suit, finishing 1.5% lower at 30012, just above its own terminal support line. A quick look at the daily chart shows price right on a tenuous trendline as it takes out daily ATR support at 30000 proper – a very bearish sign:
S&P futures have rebounded later in the Asian session however after finding a bottom at 2680, but can it climb back above support at 2700 tonight is the question:
Japanese stocks also slumped as Yen gets stronger on the safe haven bid with the Nikkei 225 losing over 1.5% to close at 22018, making another new daily low and turning this dip into a correction. The USDJPY pair had a wild session today, ranging down to the 108 handle before finding strong support below as it tries to get back above the new downtrend:
The ASX200 finally cracked through the 6000 point barrier, closing 0.4% down to 5984 points, taking out ATR daily support and setting up for a follow through selloff. The Aussie dollar fell in the first part of the session, going through the 75 handle on the housing approval figures before climbing suddenyl back above the 75 handle in a move I don’t think has legs going into a quite volatile session tonight:
Its a big night of data for the economic calendar that is heavily Euro-centric at first, with German unemployment and CPI, plus OECD forecasts for the EZ. In the US its the first of the GDP components with personal consumption and wholesale inventories.
Apologies for lack of Macro Morning, one of my brokers software – that I get these charts from – went haywire! Notice I said one, I always have at least two or three brokers when trading and spread capital across all of them.