Macro Afternoon

Advertisement

The bounce has deflated here in Asia although Chinese stocks are just holding on to the inversion in risk sentiment overnight with the USD gaining slightly today.

The Shanghai Composite is hovering on a scratch session going into the close, currently unchanged at 2877 points while the Hang Seng Index is also unmoved at 26231 points. Price is hovering just below the high moving average on the daily chart, but not making any new daily or session lows which is not bad news, but not good enough:

Advertisement

Japanese share markets are off due to the poor risk sentiment despite a late selloff in Yen with the Nikkei 225 closing 0.3% lower to finish at 20618 points. The USDJPY pair has bounced off its session lows from last night and is currently at the mid 106’s going into the City open, but still below the previous peak at the start of the week:

The ASX200 has given back more than half of its recent gains and was the worst in the region by far, closing 1% lower at 6483 points, while the Australian dollar has been rleatively resilient following the poor mood, still currently doing nothing just below the 68 handle:

Advertisement

S&P and Eurostoxx futures are flat again with European stocks unlikely to advance so far, with the S&P500 four hourly chart showing price steady above recent ATR trailing support at the 2890 level but not advancing above the high moving average band:

Advertisement

The economic calendar ramps up tonight with Canadian CPI and the last minutes from the FOMC meeting.