It’s a flat start to the trading week as risk markets continue to absorb a lot of hesitation and concern from weekend stats showing the coronavirus isn’t slowing down as expected, with emerging markets and the failed US response creating a lot of “second wave” risk. Gold has lifted strongly with a decent breakout, while Asian equities are largely down or putting in scratch sessions with European and US futures indicating flat to mild losses tonight.
In mainland China, the Shanghai Composite is off nearly 0.2% to 2964 points while the Hang Seng Index is down 0.9% to take back most of Friday’s gains, now at 24430 points, still in its own little funky sideways trend despite good positive momentum building:
Japanese share markets were down slightly with the Nikkei 225 slipping 0.2% to 22437 points while the USDJPY pair went nowhere again with a fairly tight session to currently be just below the 107 handle before the City open, remaining relatively depressed here and still only just above the weekly low at the 106.80 level:
The ASX200 fell nearly 1% to start the week before a mild recovery on the back of some soothing RBA words has seen it finish a handful of points higher at 5944 points. The Aussie dollar gapped down to an almost two week low on the open before putting on a good rally throughout the day, but retreating slightly before the European open at the mid 68’s and not really going anywhere:
Eurostoxx futures are down 1.2% while S&P futures are dead flat as traders await more COVID-19 and economic data. The S&P500 four hourly chart is ready to breakdown here again below trailing ATR support at the 3040 point level, with price hugging the low moving average and looking as tired as Trump’s helicopter walk from his failed rally last night:
