Asian stocks have pulled back instead of bouncing higher in line with buoyant US markets overnight, unsettled by geopolitical tensions, particularly those brewing in Turkey. The Aussie and Kiwi dollar fell, the latter due to the lowest business confidence data in nearly a decade.
The Shanghai Composite turns its slip into a selloff, closing 1% lower to 2739 points as it continues to reject overhead resistance at the 2800 point level. The Hang Seng Index is doing about the same, down approx. 0.8% to 28190 points, trying hard to maintain its position above previous terminal support at 28000 points as it comes up against daily ATR resistance:
S&P futures are down slightly with Eurostoxx retracing about 0.2% as markets re-assess the ebullient mood, but that four hourly chart is still looking quite bullish:
Japanese stocks continue to do nothing much here with the Nikkei 225 lifting only very so slightly, up 0.1% to close at 22869 points. The USDJPY pair has maintained last nights breakout point by hovering at the 111.60 level throughout the session, still well above previous overhead resistance at the 111.40 level;
The ASX200 put in a scratch session after previously clearing key resistance at 6300 that had been an anchor for so long, closing 0.1% higher at 6351 points. The fall in the Aussie dollar hasn’t helped here, as it looks set to remain under the 73 handle proper as it completely rejected overhead resistance at the 73.70 level last night, now an uncle point:
The economic calendar continues with three big releases tonight, German unemployment and CPI then US core personal consumption expenditure.