It looks like the risk complex has had enough of buying, with all stock markets coming up against resistance and unable to push through, the catalyst today being the Chinese revision in official GDP growth targets, coupled with the clear death of freedom in Hong Kong. The USD continues to firm against all the majors as we move closer to a full risk off mood.
In mainland China, the Shanghai Composite is down over 1.5% to 2827 points having wiped out all of this month’s gains, with the Hang Seng Index falling nearly 5% in a big rout down to 23087 points. A clear breakdown of what was firm support at the 23300 point level, turning this sideways move into something more interesting:
Japanese share markets were the relative best performers, with the Nikkei 225 closing 0.8% lower to 20388 points, while the USDJPY pair is falling going into the London open, about to threaten the 107 handle proper as safe haven buying accelerates:
The ASX200 fell back below the 5500 point level in a mild selloff that gathered pace later in the session, falling 1% to 5496 points and putting breakout theories to the test as the economy re-opens. Meanwhile the Aussie dollar has fallen sharply down towards the 65 handle after its rollover last night:
Eurostoxx and US futures are down over 1% with the risk off mood darkening as we head into the weekend, with the S&P500 four hourly chart showing the inability to break above its weekly resistance level at 2960 points, which is required before a decent run up to 3000 – watch key support at 2900 points tonight:
Have a good weekend and safe trading!