In response to the EU/US trade “deal” overnight, Asian stocks have returned a mixed session today, as the weaker USD drags down correlated stock markets, particularly in Japan. The plunge in Facebook shares after hours is also undermining confidence in tech stocks, while trade in Yuan is becoming even more volatile both onshore and offshore.
The Shanghai Composite has given back most of its recent breakout to finish 0.8% lower at 2879 points, getting back below recent resistance above 2900 points. The Hang Seng Index is following in lockstep, down 0.9% to 28646, taking back yesterdays gains but still looking like a swing play move higher off of support at 28000 points proper:
S&P futures are steady alongside Eurostoxx with traders anticipating the ECB meeting tonight. The S&P500 four hourly chart looks like a stairway to heaven again as the market tries to move back to the former high at 2875:
Japanese stocks have done much better than expected with a stronger Yen normally providing a headwind. The Nikkei 225 only closed 0.1% lower at 22586 points, with prices stuck between the low and high moving average band on the daily chart. The USDJPY pair is slowly deflating here, moving well below the weekly downtrend line that had been support in the recent breakout. Its moving towards the mid 110’s as USD loses against the other undollars:
The ASX200 was brought back into line again today, with some fallout on the Nine/Fairfax merger, but otherwise a scratch session to close at 6244 points, still respecting support at 6200 points but unable to successively retest the recent highs. The Aussie dollar was unable to translate last nights gains into further move higher, finding short term resistance at the 74.50 level:
The data calendar continues with the closely watched ECB meeting and interest rate decision and the even more closely listened to press conference with Super Mario thereafter.