Not a good finish to the week here in Asia with all stock markets reporting a loss as pessimism around any trade deal between the US and China builds, with Trump’s focus on domestic issues and creating an “emergency” as political theater. The USD has reversed again with gold prices lifting slightly.
The Shanghai Composite lost nearly 1%, blipping below the 2700 point barrier, closing at 2694 points. The Hong Kong Hang Seng Index fell even further, selling off to make a new weekly low, down 1.8% to 27943 points. This doesn’t mean the trend is over with the low moving average still untouched but I’m watching the 27600 point level closely:
US and Eurostoxx futures are retreating in line with other risk assets with the S&P 500 looking to revert back down to the ATR support level at 2730 points, unable to breach the 2760 point level of resistance all week:
Japanese stock markets fell as well, with the Nikkei 225 closing over 1% lower at 20884 points, falling below key resistance that had been broken briefly. The reversal of USD strength from the retail sales print overnight continued into the Asian session as the USDJPY pair pushed down to the low 110 level. This could accelerate if it crosses below the previous resistance now support level at 110.20:
The ASX200 was the strongest in the region this time with a late surge to just finish in the green, up a few points to close at 6066 points. The Australian dollar has retraced again, heading back below the 71 handle as it failed to make a new high so this looks like another return to the January lows:
The economic calendar finishes the week with a whimper, not many important releases to watch save the reaction to Trump’s “National Emergency”. There’s some tertiary releases in Europe that could be Euro-sensitive, plus Janaury industrial production numbers from the US. Have a good weekend!