A red day for stocks across Asia in a wide risk off mood following the mild selloff on Wall Street overnight. This will continue tonight with futures off by at least 2% finally taking some heat out of some very overheated markets. The USD is coming back against some of the majors, with Pound Sterling and the Aussie losing ground throughout the session today while gold has held on to its overnight gains.
In mainland China, the Shanghai Composite is off by more than 0.8% to 2920 points, while the Hang Seng Index has fallen 1.7% to 24613 points. Price was poised here above the previous sideways highs from April but this breakout has failed to make a new high for the week as momentum rolls over:
Japanese share markets continued to lose steam with the Nikkei 225 finally putting in a decent selloff, down by nearly 3% to 22472 points, while the USDJPY pair is deflating a bit slower now, just above the 107 handle going into the City open, having wiped out all of last week’s gains and then some:
The ASX200 had a fantastic day for short sellers – off by 1% at the open, a mild bounceback and then a strong downtrend into the close – finishing 3% lower at 5960 points. The Aussie dollar fellback as well, flopping below the 70 cent level after looking firm going into last night’s FOMC meeting where support must hold above the 68.80 level:
Eurostoxx and S&P futures are down over 2% going into tonight’s session as the worms turns for all the algo’s who have gone all in on stocks, with the four hourly chart of the S&P500 finally showing a successful bearish rising wedge pattern! Although this will require further falls below the 3100 point level to stick and to make short sellers more excited:
