The risk off sentiment is growing with Asian share markets falling across the board, except locally, as the USDJPY pair hits a three month low. Its all about how Trump can keep his mouth shut during the upcoming US/China talks, although news of another missile launch in North Korea is adding to the volatility.
The Shanghai Composite has fallen 1.5% to close at 2850 points, now in correction territory. In Hong Kong, the Hang Seng Index fell even further, down 2.2% to 28349 points, with price slumping right down to the weekly support near the 28000 point level:
US and Eurostoxx futures are down over 0.6% with the four hourly chart of the S&P 500 still unable to stabilise here after a steady series of lower lows as price remains well below the previous terminal resistance level at 2900 points:
Japanese share markets continued to fall, with the Nikkei 225 closing 1% lower to 21402 points and adding to the monthly lows. The USDJPY pair appears in near free fall on the NK launches, falling straight through the 110 handle, and sending a clear risk off indicator as trailing resistance overhead and momentum remain negative:
Australian stocks were still the best performers, with the ASX200 climbing 0.4% or so to 6295 points in a strange risk inversion session. The culprit or hero depending on your view is the Australian dollar which has fallen in a series of lower lows, now at the 69.70 level and ready to hit the Monday morning gap open price:
The economic calendar includes a few Federal Reserve speeches, the US trade balance and initial weekly jobless claims.