Well that was a short lived bounce, as risk assets fall across the region despite more fiscal and monetary stimulus nods and suggestions overnight. US cases of coronavirus have now spiked over 1000, although good news in South Korea and elsewhere about declines in new cases will be overshadowed as the Americans start to panic. S&P futures are rocky going into the European session with gold rebounding.
The Shanghai Composite was travelling well before the long lunch break but has given up its gains going into the close, down some 0.6% to 2980 points, just unable to get back above the 3000 point barrier. Meanwhile the Hang Seng Index is off about the same to close at 25219 points, also unable to get back above a key weekly support level above 26000 points:
Japanese share markets are unable to find any confidence, taking back the previous gains and then some as Yen buying started again, the Nikkei 225 closing 2.2% lower to 19416 points, as nerves remain frayed. The USDJPY pair has stalled in its own bounceback, falling back to the low 104’s and ready to rollover to get back to support at the 101-102 level:
The bottom pickers are feeling the pain locally with the ASX200 the big “winner” again, this time closing more than 3.5% lower to 5725 points as realisation sets in. The Australian dollar has stabilised around the 65 handle after its slow meltdown, not helping equities at all as the promise of a big stimulus package from ScottfromMarketing while RBA does SFA gives no excitement:
Eurostoxx and S&P futures are falling sharply with the latter’s four hourly chart showing an inability to get back above the previous support level at 2900 points, with another rollover back to the previous lows at 2700 most likely:
The economic calendar continues overnight with the US February CPI print and the latest DOE oil inventory report.