Chinese bourses are dragging down the risk sentiment into a defensive mode given the late poor lead on Wall Street overnight, as the Brexit drama rolls on again. The possibility of an extension to Brexit to even early next year is providing a little bit of hope but both Euro and Pound Sterling are steady in early trade, as stock futures stumble.
The Shanghai Composite was unable to get back on track from the previous steady session and has fallen late in the session, down 0.6% to 2935 points, remaining well below 3000 points. The Hang Seng Index is doing even worse, down nearly 1% to 26525 points as it finally rejects resistance overhead at the 27000 point level:
Japanese share markets reopened after a holiday with the Nikkei 225 up 0.3% to 22625 points despite Yen strengthening throughout the session, with the USDJPY pair falling almost down to trailing ATR support and possibly breaking through the 108 handle soon:
The ASX200 remained steady, putting in a scratch session to close at 6673 points as the daily pattern starts to stall again. The Aussie dollar slumped early in the session and almost cracked through ATR support but has recovered somewhat to be below the mid 68 level again before the City open – watch the 68.20 level carefully:
Both S&P and Eurostoxx futures are down nearly 0.5% with the Brexit drama again spilling into the risk taking arena. The S&P500 four hourly chart is developing a nice short term bearish rising wedge with the inability to break above the psychologically important 3000 point barrier, as selling pressure builds:
The economic calendar ramps up with the August house price data from the US, plus the ongoing Brexit negotiations.