Quite a mixed response to the record high on Wall Street here in Asia with Chinese markets falling on the back of continued protests in Hong Kong, with only the Australian bourse putting a positive – and record high – session. Caution is the name of the game going into this week’s big series of economic events, namely the FOMC meeting but also more US-China trade talks and the BOJ meeting tomorrow.
The Shanghai Composite is drifiting lower, currently down 0.15% and unable to get back above 3000 points while the Hang Seng Index fell sharply, down 1.5% to 27976 points. This takes out the recent support level at the 28100 point are for a stark breakdown:
Japanese share markets were also hesistant despite the elevated USDJPY pair from Friday night as Yen strengthened throughout the session. The Nikkei 225 closed 0.2% lower to 21616 points as a result. The USDJPY pair gapped a little lower to the mid 108’s but has recovered nearly half that to remain stable here before tomorrow’s BOJ meeting:
The ASX200 was the standout, finally breaking it November 2007 high intraday and closing 0.4% higher at 6825 points. Only took 12 years….. The Australian dollar is flat as a pancake, hovering just above the 69 handle and looking set to return to its 68.50 recent low:
S&P and Eurostoxx futures are down 0.3% going into the European session with the S&P500 four hourly chart displaying a possible double top pattern and hovering just above the previous high near 3020 points:
The economic calendar starts the week slowly with the usual Treasury auctions, with all the action starting tomorrow.