Well it’s been an interesting day to say the least here in Asia for risk markets with the Iranian attack on US bases in Iraq dominating the news and sentiment. Gold spiked above the $1600USD per ounce level alongside Bitcoin and other safe haven assets, setting of a chain of cash spilling out of stocks with only the ASX200 missing out on a wider selloff.
The Shanghai Composite has closed 1.2% lower to 3066 points, while the Hang Seng Index fell the same, just hanging on above 28000 points and above daily support:
Japanese share markets had volatile sessions alongside swings in Yen with the Nikkei 225 taking back its recent gains to close 1.6% lower to 23204 points. The four hourly chart of the USDJPY pair shows this immense volatility around the Iranian attacks with a brief interlude below the recent extreme lows before a recovering back above the 108 handle:
The ASX200 was a standout again, this time because of the lack of volatility, only losing a scant 0.1% after being down nearly 1% in early trade, closing at 6817 points. The Australian dollar is going almost nowhere since its big breakdown last night, hovering right on the 68.70 level against USD but looking quite delicate going into the City open:
Both S&P and Eurostoxx futures are suggesting a big return to volatility tonight with the S&P500 likely to oscillate above the 3200 point barrier as traders re-weight their risk assets a little less complacent before today’s attacks:
The economic calendar includes two mid tier releases, namely German factory orders and the latest private employment numbers from the US. Oh and what will probably be a rambling press conference or a slurred speech from President Trump. Good luck trading around that!