Chinese stocks are now in bear mode with losses now exceeding 20% in the wake of the Chimerican Trade War of 2018. The losses are not fully spilling over into other Asian bourses, but its enough to stand to reason that the whole risk edifice is teetering. The USD is taking a hit as well, especially against Euro, but this is from quite an oversold base for the union currency. Tonights session will illustrative on Wall Street as it stands close to falling into a corrective phase itself.
The Shanghai Composite continues its sell off, gapping down nearly 1% at the open and keeping their to close at 2834 points. The Hang Seng Index did a lot better, only down 0.2% to 28908 points but still well within a corrective phase, although its now well oversold and ripe for a pullback:
S&P futures are up slightly alongside Eurostoxx on selling exhaustion with the four hourly chart showing a possible dip filled in to the 2720 level at the low moving average. On the upside I’m watching 2740 points:
Japanese stocks actually put in a positive session, or more of a scratch session with the Nikkei 225 closing a few points higher at 22342 points, still not breaking into a full correction. The USDJPY pair is bunching up here at just below the 110 handle with a strong finish in the Asian session but no new session high. I’m still watching 108.75 as the uncle point here:
The ASX200 pulled back again but only slightly, able to recover most of the opening gap down to finish only 0.2% lower to 6197 points. The Aussie dollar is again relatively unchanged from its Friday night push higher, still just above the 74 handle as part of a multi week breakdown in price:
The data calendar has two major releases to watch out for tonight, first US home sales and then consumer confidence figures for June.