You’d think everything is fine outside Australia, but emerging markets and a higher USD are dragging risk markets across the region down. With the BOE meeting tonight, Pound Sterling is hovering at a low against USD, while the Aussie dollar is also plumbing new lows.
The Shanghai Composite was unable to translate yesterdays fishy positive session into a two day move, with a solid selloff after the lunch break sending it down 1.3% lower to 2875 points. The Hang Seng Index fell about the same, clawing back all of yesterdays gains falling 1.2% to be back below resistance at 30000 points and still below the long held lower trend line here on the daily chart:
S&P futures are up slightly alongside Eurostoxx – but only just, and while the four hourly chart looks nominally bullish, its still not out of the woods until resistance at 2780 or so is cleared substantially:
Japanese stocks were quite mixed, with the TOPIX not gaining any traction while the Nikkei 225 lifted about 0.6% on the back of a weaker Yen, closing at 22693 points. The USDJPY pair briefly touched last week’s session highs before retreating to the 110.60 level as the last 24 hours have been a little too quick in an upward trajectory. I’m watching for a pullback to the high moving average at around 110.30 later tonight before another legup:
The ASX200 is bullish beyond belief, putting on exactly 1% in an unsustainable short term ride, closing at 6232 points, loving the lower Aussie dollar and decimating the bank shorts. The Aussie dollar has fallen over again, still on a downward trajectory as price continues to hug the low moving average here on the four hourly chart with the 73 handle within sight by the end of the week:
The data calendar is busy tonight with both the Swiss central bank and BOE having their monthly meeting, then its US house prices and initial jobless weekly figures.