Macro Afternoon

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Not a pretty end to the week here in Asia with all stock markets selling off in response to the overnight risk-off mood on Wall Street. Its all about trade with Trump continuing to upset the apple cart – and hence the global financial system.

The Shanghai Composite has had the rug pulled out, probably due to the Chiense trade data, slumping 1.4% to close at 3065, completely taking out intermediate support at 3100 points and putting it back more than a week ago. The Hang Seng Index followed suit, down over 1.6% to close at 31007, barely clinging on to 31000. I’ve been mentioning how this melt up was looking unsustainable as it raced too fast to the former high at 31700, and here it is – watch the low moving average to hold:

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S&P futures are off, as are Eurostoxx, down around 0.6 to 0.8% as the former dices with the uptrend line on the four hourly chart – very interesting session coming up:

Japanese stocks retraced as expected as Yen was bid strongly throughout the session, the inverse correlation holding. The Nikkei 225 closed 0.6% lower at 22695 as a result. The USDJPY pair has slipped back below the 110 handle as it completes a bearish rounding top pattern here on the four hourly chart:

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The ASX200 was spared a big selloff, slipping only some 0.2% to still finish well the week above 6000 at 6045 points. The Aussie dollar is dicing with the 76 handle and looks set to push below that level tonight as the USD bulls circle the gate:

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The data calendar ends the week with the BOE inflation targets and Canadian unemployment prints.