Macro Afternoon

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Not a good start to the week with risk markets falling immediately on the Monday morning open, absorbing Friday nights OPEC meeting and lack of direction from Wall Street. While the USD retreated against Yen on the safe haven bid, the other majors have pulled back slightly, with gold selling off after its breakdown last week.

The Shanghai Composite has broken again, selling off swiftly into the close, down over 1% to 2858 points. The Hang Seng Index is following suit, closing 1.2% lower at 28952 points and continuing its current corrective phase, making another new daily low:

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S&P futures are down slightly alongside Eurostoxx with the four hourly chart starting to flip from dip mode to correction with resistance overhead at 2780 points a distant memory. I’m watching 2740 closely and then the intrasession low at 2730:

Japanese stocks had a somewhat similar poor start to the week on the back of a stronger Yen, with the Nikkei 225 down approx 0.8% at 22338 points, but not yet breaking into a full correction. The USDJPY pair however is paving the way, starting the gap well below the 110 handle and making a byline for the 109 level and a new two week low. I’m watching 108.75 as the uncle point here:

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The ASX200 pulled back but not as extreme with optimism still floating around, closing only 0.25% lower to 6212 points. The Aussie dollar has been relatively unchanged from its Friday night push higher, still just above the 74 handle as part of a multi week breakdown in price:

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The data calendar starts the week slowly with a series of US Treasury auctions plus new home sales data.