Macro Afternoon

Advertisement

Asian risk markets are taking a deep breath here as a rolling emerging markets crisis bears fruit mainly among stocks, but also the burgeoning USD. There has been a hiccup here though with the Australian dollar moving higher on today’s jobs report, while the Yen fellback slightly as did offshore Yuan as the PBOC weakened again.

The Shanghai Composite looks like closing with a scratch session, currently at 2718 points, still unable to find any positive sentiment, with previous support at 2800 confirming as staunch overhead resistance. The Hang Seng Index is off nearly 0.4% to 27198 points, still maintaining its fall below terminal support at 28000 points, with another new daily low turning this downtrend into a capitulation:

Advertisement

S&P futures are up slightly with Eurostoxx futures also suggesting a minor blip higher on the open. USD strength is no longer weighing as much on equities with the four hourly chart coming back strongly to be back above the start of week lows, but resistance at 2840 will be key tonight:

Japanese stocks are very cautious here, even with a weaker Yen with the Nikkei 225 closing only a few points lower at 22192 points. The USDJPY pair bounceback continues but is finding some mild resistance at the 111 handle again, but still unable to get above the high moving average on the four hourly chart:

Advertisement

The ASX200 also put in a scratch session, maintaining its breakout above 6300 points after being nearly 0.4% lower during the day. The Aussie dollar bounced strongly on the jobs data, but has hit trailing ATR resistance at the high 72s which will be critical going forward tonight when the City opens:

Advertisement

The economic calendar tonight includes US initial jobless claims and UK retail sales data.