Macro Afternoon

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Another rough day here on Asian stock markets with some fluctuation in USD weakness as the upcoming December 15 China tariffs are seeming to firm. A big spike in the offshore Yuan – up to a month high 7.07 level – plus a firmer Yen is keeping risk taking at bay, although European futures are looking up.

The Shanghai Composite has slipped some 0.25% not helped by the weaker Yuan and closing below the 2900 point level again at 2878 points. The Hang Seng Index has fallen over 1% and confirming its recent breakdown, closing at 26082 points:

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Japanese share markets continue to tumble in line with the risk proxy USDJPY pair, with the Nikkei 225 closing over 1% lower to 23135 points, only just clinging above daily support at the 23000 level. The USDJPY pair had a see saw session to remain rooted at the mid 108 level and is looking ripe for another breakdown tonight:

The ASX200 was again the biggest loser, down 1.6% to 6606 points, wiping out almost all of two months gains in only a few short days. The Aussie dollar has reversed on the weaker GDP print after hitting the 68.60 level overnight, now struggling to maintain itself above the 68 handle:

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Both S&P and Eurostoxx futures are stalled here with the S&P500 four hourly chart showing another small bounceback is still possible tonight as momentum remains in full oversold mode, so a swing higher back above the high moving average is possible but unlikely:

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The economic calendar includes the Canadian central bank interest rate meeting and the November ISM services print from the US.