Macro Afternoon

Advertisement

It was a mixed repsonse to the trifecta of Chinese internal economic data, slightly overshadowed by the Japanese government looking to downgrade its growth forecasts, which sent Yen falling against USD. The Yuan fell too on the lower PBOC fix, while Pound Sterling continued its no deal Brexit reaction and sold off throughout the usually quiet Asian session.

The Shanghai Composite is back below 3000 points, falling 1% in response to the Chinese NBS comments on the trifecta economic releases while the Hong Kong Hang Seng Index is putting in a scratch session, down only a few points to 28781, unable to continue its recent bounce off trailing ATR support on the daily chart. The next level to beat remains the former daily highs above 29000 proper, but a new daily high is really required soon:

Advertisement

US and Eurostoxx futures are flat as markets got slightly overbought overnight. The S&P 500 four hourly chart shows some hesitation in following through on gains above the 2800 point level breached last night:

Japanese stock markets are barely squeezing out a positive result, despite a much weaker Yen, with macro forces turning caution inward. The Nikkei 225 has closed about 0.2% higher to just over 21327 points, still unable to break free of its previous breakout point in early February. The USDJPY pair has shot straight up to trailing ATR resistance at the mid 111’s on the back of the government downgrade, with a potential run up to last weeks high at the 112 handle possible:

Advertisement

The ASX200 is the best performer in the region, closing up 0.3% to 6179 points as the Australian dollar rejects resistance overhead at the 71 handle and gets back to its Monday gap high starting place:

Advertisement

The economic calendar is a bit slower tonight with a variety of second and third tier releases, including US initial jobless claims, but expect more Brexit shenanigans!