Asian share markets are on the backfoot following the dour return of Wall Street overnight with falls across the region as the USD regains against all the majors, with safe haven buying in Yen the biggest move as the Australian dollar teeters on edge.
The Shanghai Composite is the only standout, up slightly to 2914 points, while the Hang Seng Index has closed 0.5% lower to 27264 points, wiping out the very brief uptick to start the week. The daily chart still shows a deceleration pattern with a bottom potentially forming here at the 27000 point level but sentiment and momentum is way against it:
S&P and Eurostoxx futures are down 0.6% or so with the four hourly chart of the S&P500 chart suggesting a flop below the key terminal support level at 2800 points, which signals the completion of a very bearish head and shoulders pattern on the longer term charts:
Japanese share markets are off the most with the Nikkei 225 closing over 1% lower to 21003 points looking in a very weak position and restarting its corrective phase. This is mainly due to the fall in the USDJPY pair which is pushing lower to the 109 handle, making a new weekly low:
Australian stocks are falling in line with other risk assets with the ASX200 falling 0.7% to 6440 points unable to get back to previous support, now staunch resistance at 6500. The Australian dollar has been unable to break out of its tight support/resistance band but later in the session has fallen to just above the 69 handle as the risk-off signals start to mount:
The economic calendar continues with the German unemployment print and the latest Canadian central bank meeting.