Macro Afternoon

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The risk on mood from overnight markets has not translated into any substantial gains here in Asia with most stock markets retreating although local stocks blipped higher due to a rise in bank stocks. Currency markets are somewhat back to normal as well after the big moves in Pound Sterling overnight while gold retreated slightly.

The Shanghai Composite is down slightly, about 0.1% lower going into the close, as the PBOC weakened the Yuan slightly in todays fix, the market currently at 2567 points. The Hang Seng Index is down slightly further, slipping 0.2% to 26773 points, still looking strong however as this relief rally slowly morphs into something more substantial:

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US and Eurostoxx futures are up around 0.5% or so going into the London open with the four hourly S&P 500 futures chart wanting to build after breaking through resistance at the psychologically important 2600 point level last night:

Japanese stock markets were the worst performers today with the Nikkei 225 down 0.6% to 20425 points. This was mainly due to a lower USDJPY pair as Yen buyers came to the fore on internal domestic gyrations over the BOJ inflation policy. The pair is still holding at the mid 108’s but has been unable to break above the symmetrical triangle pattern forming on the four hourly chart:

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The ASX200 had the best session in the region, finishing 0.4% higher to 5835 points, building over the 5800 level and looking quite bullish on the daily chart for a change. The Aussie dollar is still tracking sideways with very low volatility, remaining just below the 72 handle with no upside or downside breaks evident as yet:

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The economic calendar is a strange one tonight because most of the US releases – big ones too like retail sales – won’t be…err released, due to Trump’s shutdown of the government. What a businessman!

In the UK, the Brexit deal vote fallout will dominate, but there’s also the December CPI print to deal with, so Pound traders will have another interesting night.