The failure to strike a US China trade deal continues to weigh on markets here in Asia as signs are mounting that all the posturing and posing by Chairman Pooh and President Wiggum is just that: a show. Stocks are looking rocky going into the northern hemisphere session and the USD continues to firm against everything except Yuan with gold making a small comeback amongst the uncertainty.
In mainland China, the Shanghai Composite has eked out a minor scratch session, closing a couple points higher but remaining below the key 3000 point resistance level. Meanwhile the Hang Seng Index is slipping even further, down 0.3% to 27592 points and looking toppy here on the daily chart after only recently clearing the 27000 point level:
Japanese share markets are treading water as the stronger Yen and lack of optimism weighs, the Nikkei 225 closing only 0.1% higher at 23330 points. The feared retracement in the overbough USDJPY pair is slowly developing into a risk off mood as it pushes below the 109 handle but remains above trailing ATR support:
The ASX200 is the darling in the region, lifting exactly 1% on the back of a reversal in fortune for bank stocks, closing at 6726 points and helped by a lower Aussie dollar which is pushing well below the 69 handle and is struggling here right around weekly support at the 68.75 level:
Both S&P and Eurostoxx futures are steady with the S&P500 four hourly chart showing a retracement turning into a sideways trend with a tight line of support and resistance forming, with ATR support at 3050 points the uncle point going forward:
The economic calendar is stacked with some important releases tonight, first in Europe (or ex-Europe, pining for the fjords Europe) its the BOE meeting and Governor’s press conference, plus the latest EU economic forecasts.