Asian stock markets are not liking the new round in the US trade war with China with falls across the region as Yen buyers step in on the safe haven and the Australian dollar is wallopped on the commodity selloff while the Yuan has sold off to a new monthly low.
The Shanghai Composite has fallen nearly 2% to be at 2859 points while the Hang Seng Index has gapped down a further 2.4% to 26913 points. This puts it almost back to the May lows in one foul swoop!
Japanese share markets are doing even worse, off by nearly 3% with the Nikkei 225 currently at 20967 points. The USDJPY pair is now threatening the 107 handle here after its 200 pip move down overnight:
The ASX200 has escaped most of the carnage, falling only 0.4% to be at 6754 points mainly due to the much lower Australian dollar which is still struggling to get off the mat, currently howvering just above the 68 handle and ready to breakdown again:
S&P and Eurostoxx futures are off considerably and for good reason going into the European session with the S&P500 four hourly chart looking to break below the key support level at 2950 poins that has been held for most of the calendar yeaR:
The economic calendar closes the week out with a big one – US non farm payrolls or better known as July employment figures. Its going to be a fun night! Have a safe weekend.