Macro Afternoon

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Risk sentiment is falling quickly here in Asia with most share markets taking a dive. with bids in Kiwi and Yen as other safe havens like Treasuries get a bid, the 10 year falling below 2% again. It looks like another poor session on Wall Street tonight with no positive catalysts forthcoming as geopolitical tensions remain high.

The Shanghai Composite has fallen over 1%, retracing swiftly back below the 3000 point barrier while the Hang Seng Index has moved even further, down 1.2% to 28170 points. The daily chart had been trying to build above last weeks breakout but an inability to make any new session highs above 28600 was telling:

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Japanese share markets are surprisingly resilient despite a much stronger Yen with the Nikkei 225 closing 0.43% lower to 21164 points. The USJDPY pair has followed Monday’s weak start with a flop here in today’s session, falling straight below the 107 handle in a safe haven run:

The ASX200 remains the best in the region, but its all relative, as it fell 0.15% to 6658 points. The Australian dollar is treading water with all the action in its Kiwi brother, stuck here below the 70 handle and unable to make a new session high since overnight action kept it steady:

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S&P and Eurostoxx futures are down about 0.3% ot so with the four hourly chart of the S&P500 chart showing an inability to push higher as price hovers around the Friday high at 2960 point or so. Watch for a flop back to monthly support at 2940 or so:

The economic calendar ramps up tonight with the latest US house price indices, plus consumer confidence for June, but the big one to watch will be Fed Prez Powell’s talk on monetary policy.

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