Most Asian stock markets slipped in trading today as the response to the cooler than expected US CPI print and a much higher Yuan, all in anticipation of the signing of the Phase 1 US/China trade deal takes risk off the table temporarily.
Chinese stocks are now struggling to absorbing the Yuan rise with the Shanghai Composite slipping below the 3100 points level, closing 0.4% lower at 3095 points, while the Hang Seng Index has fallen 0.6% to close at 28709 points. The daily chart shows some support as price remains elevated with solid momentum:
Japanese share markets fell back as well despite the Yen not rising significantly last night or during the session today, with the Nikkei 225 falling nearly 0.5% to 23916 points. The USDJPY pair has been unable to make any gains for awhile now, still above its 2019 highs but retracing slightly below the110 handle:
The ASX200 was the only market to advance in the region, again almost closing above the 7000 point level by lifting 0.4% to 6994 points. A steady and then slightly lower Aussie dollar has helped here where its still unable to exceed the 69 handle since the start of the trading week as this long swing trade reverts to the downside:
Both S&P and Eurostoxx futures are suggesting a steady start to the Northern hemisphere session tonight, with the four hourly chart of the S&P500 showing hesitation here just below the recent record highs:
The economic calendar has two major prints tonight, namely the latest German GDP and UK CPI releases, then the DOE oil inventory report.