Quite a mixed session in Asia today with Chinese markets selling off the hardest while the ASX200 lifted on a bank rally. There was more action in currency markets in preparation for some very sensitive releases tonight (German CPI and US GDP) with the Aussie still falling against everything, as did the Yuan on a much larger than expected fix lower.
The Shanghai Composite continues its sell off, cracking below 2800 points for the first time, down 0.65% to close at 2795 points and deep in bear market territory. The Hang Seng Index is so far putting in a scratch session, up a handful of points as it struggles with its own breakdown. There is daylight below to 24000 points, although the daily chart is quite oversold and ripe for a swing higher:
S&P futures are relatively steady but the Eurostoxx is off 0.4% with the four hourly chart of the latter still depressed slightly above the 2700 point area. Its going to be a critical session tonight:
Japanese stocks were mixed again with the broader TOPIX down 0.25%, while the Nikkei 225 closed about square at 22270 points, still not breaking into a full correction. The USDJPY pair continues to bunch up above the 110 handle again having another go at overhead resistance at 110.70 or so later in the session:
The ASX200 actually advanced again against expectations, up 0.3% and still buoyed by a lower Aussie dollar, closing only at 6215 points. The Aussie dollar is still falling having broken trailing ATR support at the 73.60 level overnight and below the steeper downtrend line:
The data calendar has two major releases tonight that are very Euro and USD sensitive, first with German CPI and then US GDP growth.