Macro Afternoon

Advertisement

Stock markets continue their topsy turvy ride with a bounceback here in Asia following a very nervous night on Wall Street. Chinese stocks are leading the charge while a lower Yen is helping Japanese bourses, the USD is also weakening against the Aussie and the Kiwi.

The Shanghai Composite did well at the start of the session but is struggling after the long lunch break, currently up only 0.25% to just above key support at the 2600 level. The Hang Seng Index is doing only slightly better, up 0.3% to 25426 points, still below the previous support level at 26000 points and struggling to find a bottom here:

Advertisement

S&P and Eurostoxx futures are up slightly with the four hourly S&P 500 chart showing a potential bottom from last nights action after breaking key support that had held for the last two weeks. But it must climb above trailing ATR resistance at the 2758 level tonight:

Japanese stocks have comeback the most with the Nikkei 225 closing 0.6 % higher at 22151 points. The USDJPY pair is behind this move with another attempt at a breakout above resistance at the 112.60 level, just shy as momentum picks up:

Advertisement

The ASX200 remains under pressure and was the worst performer in the region, down 0.25% to 5829 points, psychological resistance at 6000 points a distant memory as it claws its way back to terminal support at 5800. Commodity currencies are doing well with the Aussie dollar however putting on a swift reversal here, just pipping above the 71 handle going into the London session:

Advertisement

The economic calendar ramps up tonight with some preliminary services and manufacturing PMIs in Europe followed by the Canadian central bank meeting at the DOE oil inventory report.