Macro Afternoon

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Outside of China it’s been a poor finish to the week for Asian share markets, with the fallout from the US selloff and “bondcano” still being felt across the region. Chinese GDP data was slightly less than expected but did not translate into falls on the mainland or in Hong Kong, while a lower Yen and lower than expected CPI for September did not help Japanese shares.

The Shanghai Composite slumped at the open but has recovered after the lunch break, currently flat at 2487 points, with key support at the 2600 level still a distant memory. The Hang Seng Index is up by 0.3% to 25540 points, reversing yesterdays minor loss, but still well below its previous support level at 26000 points:

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S&P and Eurostoxx futures are up slightly with the four hourly S&P 500 chart still unable to break free above ATR resistance at the 2820 level, with last night’s selloff needing some filling in here or we’re going back down to 2750 or lower:

Japanese stocks fell despite a much weaker Yen with the Nikkei 225 falling 0.6% to close at 22515 points. The USDJPY pair cameback slightly on the CPI print, but is still finding stiff resistance at the 112.80 level as it tries to shake off what was a solid downtrend:

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The ASX200 finoshed the week flat, down only a handful of points to 5939, unable to get back on track as it remains short of psychological resistance at 6000 points. The Aussie dollar bounced back slightly from last night’s breakdown below support at the 71 handle but it’s looking weak here going into the London open:

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The economic calendar ends the week all over the place with some government spending data in the UK that could be Pound Sterling sensitive – given the ongoing Brexit drama – followed by the Canadian CPI print, then US existing home sales data.

Have a good weekend and profitable trading!