Risk markets are slipping again, with Asia reacting to the falls on Wall Street from Friday night in a similar direction and magnitude. Fear about the economic impact of the coronavirus continues to spread with safe havens like Yen, gold and even Bitcoin – now above $10,000USD – pulling risk assets down in the main.
The Shanghai Composite is steady going into the close, up 2 points or so to 2877 points while the Hang Seng Index is falling much faster, down 0.7% to 27227 points. Price must hold above the low moving average level at 27000 points or this will become a dead cat bounce:
Japanese shares are continuing their selloff as well with the Nikkei 225 closing 0.5% lower to 23697 points as Yen selling moderated. The USDJPY pair remains steady below the 110 handle after almost breaking down on Friday night. Price is right on the 109.75 level as the point of control, where a fall below the low moving average would presage a wider risk off move:
The ASX200 stumbled into the close, down only 0.15% to 7012 points after earlier breaching below the 7000 points barrier. A higher Australian dollar that is bouncing off oversold levels is partly to blame for the earlier selloff, as it just gets back above the 67 handle:
Eurostoxx and S&P futures are flat with the four hourly chart of the S&P500 looking almost identical to that of the USDJPY pair above, with price unable to breakout above resistance at the 3340 point level, so watching the low moving average for any signs of downside volatility remains key:
The economic calendar has the usual slow start the week following the non-farm payroll print with a few Treasury auctions and some Swiss data to look at for the Franc traders.