A mixed result following the very late rally on Wall Street overnight with Japanese stocks retreating while the rest of Asia had minor gains, showing a distinct lack of confidence across the region.
The Shanghai Composite is up only a few points going into the close, or 0.1% to 2586 points, hanging on but still unable to get back above the previous support level at 2600 points. The Hang Seng Index has retreated the same amount, down 0.1% to 25734 points, still well below the previous support level and the low moving average on the daily chart:
US and Eurostoxx futures are steady going into the London open, with the daily S&P 500 futures chart still showing a downtrend and series of lower daily lows that are going to culminate in a capitulation soon:
Japanese stocks retreated despite the rally in USD against Yen overnight with a selloff on the Nikkei 225, closing 0.3% lower to 21148 points. The USDJPY pair came back slightly after making too steep a move overnight, settling just on the 113 handle and below trailing ATR resistance on the four hourly chart:
The ASX200 was the best in the region, lifting over 0.4% to 5575 points, a mild recovery given the previous losses, but better than nothing. The Aussie dollar also came back slightly to be just above the 72 handle but unable to make any gains above the high moving average on the four hourly chart, indicating that the trend remains down:
The economic calendar tonight has one major release to keep an eye on, the closely watched German ZEW survey.