A mixed day across Asian stock markets with the slump on Wall Street overnight reflected across most bourses except Chinese, which bucked the trend. The RBA decision to hold was the highlight of the day, as the Aussie dollar reached a new high beforehand as the USD weakened, the realisation that no more cuts sent the ASX200 down more than 2% as a result.
The Shanghai Composite is putting in a scratch session, helped by a better Yuan fix and looking to close again below the 2900 point level. The Hang Seng Index is slipping a little further after gapping down horribly at the start of the session to be off only 0.2% at 26388 points:
Japanese share markets didn’t have a good time of it, reflecting the poor performance from Wall Street and the risk proxy USDJPY pair’s falls, with the Nikkei 225 closing 0.7% lower to 23363 points, still clinging above daily support at the 23000 level. The USDJPY pair managed to get back above the 109 handle during today’s session amid calls by Governor Kuroda for a new stimulus package, stay tuned on that front:
The ASX200 bore the brunt of the ill will today, falling over 2% to close at just over 6700 points, crushed by rate cut expectations from the RBA and a much higher Aussie dollar. The Aussie was on a roll before the RBA meeting today, caused by Trumps tariff tweets, consolidated at the 68.15 level then pushed to a new weekly high!
Both S&P and Eurostoxx futures are climbing back here with the S&P500 four hourly chart showing a small bounceback is possible tonight after the previously walloping. Momentum readings are in classic oversold mode, so a swing higher back above the low moving average is the target, but watch that trendline:
The economic calendar is relatively quiet tonight with some tertiary CPI and PPI prints in Europe and not much elsewhere.