Macro Afternoon

Advertisement

As markets continue to discount the shitshow that is the US presidential election, shares across Asia retreated with broad losses, as the very positive start on Monday becomes a distant memory. The USD is clawing back its recent losses on the risk aversion trade with gold moving lower to the $1886USD per ounce level:

In mainland China, the Shanghai Composite is down 0.4% to 3211 points while in Hong Kong the Hang Seng Index is the only bourse in the green, up 0.4% at 23337 points. Japanese stock markets are sharply down with the Nikkei 225 closing 1.5% lower at 23185 points as Yen buying becomes dominant, with the USDJPY pair reversing almost all of its gains so far this week to the low 105s:

Advertisement

The ASX200 was the worst off as Aussie traders shook their collective heads at the orange pigeon dance, selling off more than 2% to close at 5815 points, while the Australian dollar slid back towards the 71 handle after its small stall overnight:

Advertisement

Eurostoxx futures are down 0.8% while US futures are off at least 1% with the S&P500 four hourly chart indicating a larger than expected rollover here on exasperation – watch the 3300 point level closely tonight:

The economic calendar has two major releases that could shake markets tonight, namely German (and hence European) unemployment and the 2Q GDP print in the US.

Advertisement