Asian stocks fell across the board in response to the continued tariff regime set to be imposed by the Trump Administration, hardest hit were Chinese bourses, but their satellites including the ASX200 suffered as well.
The Shanghai Composite looks like in its freefall, following up yesterday’s poor showing with another 2% selloff down, closing at 2768 points and wiping out any chance of a return back to 3000 points. The Hang Seng Index fell even further, completely taking out terminal support at 28000 points to close 2.4% down at 27677 points:
S&P futures are off sharply in the wake of the tariffs and Trump’s growing political imbrolio over the Mueller investigation, with Eurostoxx looking set for a red night on the continent. The four hourly chart shows a return to support at 2800 points which must hold going into tomorrow night’s NFP print:
Japanese stocks fell as well as the Yen went nowhere, with the Nikkei 225 finishing 1% lower at 22512 points, negating yesterday’s breakout above the high moving average band on the daily chart. The USDJPY pair remains stuck below the 112 handle unable to make good on its own breakout followed the BOJ meeting, gravitating back to the midpoint of control here as Yen safe haven buying steps up:
The ASX200 fell 0.4% on similar concerns, falling 34 points even as the Aussie dollar weakened, finishing at 6240 points. The Aussie dollar eventually slumped lower after the excellent trade balance report after completely rejecting overhead key resistance at the 74.40 level, now well below the 74 handle and looking and making a new weekly low:
The economic calendar is dominated tonight by the BOE interest rate meeting followed by US initial jobless claims.