Markets took a sudden dive on risk today here in Asia on the back of the Chinese virus news with Yen safe haven buying exarcebating the fear. Stock markets are all at bubble like highs so it won’t take much to push over the whole edifice. Gold gained on the fear trade while the Aussie dollar was relatively stable as the big mover was offshore trading in Yuan, which leapt over 300 pips:
Chinese stocks have suffered the most, understandably with the Shanghai Composite falling nearly 1.5% going into the close to sharply retrace below the 3100 points level, while the Hang Seng Index has sold off even further, following through on yesterdays bearish engulfing candle, closing some 2.2% lower to 28125 points:
Japanese share markets fell back in line with the buying of Yen with the Nikkei 225 falling nearly 1% to 23865 points. The USDJPY pair has finally moved but its going down as safe haven Yen buying pushed it below the 110 handle but not yet below its previous 2019 highs:
The ASX200 was the best in the region, losing only 0.2% to finish at 7066 points. The Aussie dollar made new session lows but recovered later in the afternoon to be just above the mid 68’s, still way short of the 69 handle and nowhere near threatening a breakout:
Both S&P and Eurostoxx futures have taken a dive in line with the risk off mood in Asia, with the four hourly chart of the S&P500 showing a possible return to the 3300 point level:
The economic calendar continues with the German ZEW survey plus Governor Carney talking amongst the policy wonks at Davos.