Macro Afternoon

Advertisement

Another mixed session here in Asia with Chinese stocks retreating the most, while Japanese bourses stabilised, local markets were wary of the Scomo election call, with the Australian dollar tapering slightly from its overnight surge.

The Shanghai Composite has closed 1.5% lower to just below 3200 points, reacting poorly to the expected CPI print, while the Hang Seng Index has fallen about half that, down 0.7% to 29908 points, unable to beat the recent steady state of daily highs above the 30,000 point level:

Advertisement

US and Eurostoxx futures are up only slightly going into tonight’s session, with the four hourly chart of the S&P 500 still showing an inability to get above last Friday’s high at the 2900 points level with trailing ATR support still being respected however:

Japanese stock markets finally stabilised today, with the Nikkei 225 closing 0.1% higher to 21711 points, but the daily chart remains threatening with a bearish double top pattern still forming. The USDJPY pair has come back slightly after its break below former trailing ATR support and pipped just over the 111 handle during the Asian session. The short term downtrend remains intact however with momentum weighing down:

Advertisement

Local stocks fell in response to the election call with the ASX200 losing just over 0.4% to be back below 6200 points again, the stubbornly high Australian dollar not helping either. The Pacific Peso retraced about 20 pips during Asian trade after the big leap overnight but this short term uptrend remains intact with a further breakout likely to continue tonight:

Advertisement

The economic calendar is relatively calm tonight with some final CPI and PPI prints for Germany and the US, plus initial jobless numbers for the week.