Risk markets are mixed across the region with local shares taking a wild ride throughout the session as a succession of banking related and bond related news hit the newswires. Only Japanese shares advanced substantially with a minor knockback in major currencies including gold as USD regained some strength.
The Shanghai Composite is putting in a scratch session, currently down a handful of points to 2819 going into the close while the Hang Seng Index looks set to close about 0.6% lower to 24092 points, still remaining above its high moving average on the daily chart, but only just as this breakout falters in its initial steps:
Japanese share markets however are zooming higher as stimulus imbibes animal spirits as the Nikkei 225 puts on another 2% to close at 19392 points, getting closer to resistance at the 19000 point level as the USDJPY pair continues its small pullback from last week’s Friday rally, remaining below the 109 handle but not yet in a selloff mood:
The ASX200 is the most schizophrenic market, gapping nearly 2% lower at the open but then rallying throughout the day before a late afternoon selloff saw another 1% inversion at the close, finishing at 5245 points. Meanwhile the Aussie dollar has reduced somewhat on the ratings downgrade, hitting the low 61’s but not yet falling through that handle despite some very strong resistance at the 62 cent level:
Eurostoxx and S&P futures are down around 1% with the four hourly chart of S&P futures showing the nascent breakout above the 2600 point resistance level ready to re-engage here if confidence can gain more traction as traders ignore the growing deathtoll across America:
The economic calendar includes the latest DOW oil inventory figures, plus the release of the most recent FOMC meeting minutes.