A sea of red across stock markets here in Asia in response to a much lower than expected Chinese manufacturing PMI, coupled with some large trading holidays for Japanese and Chinese markets has left a lot of risk off the table. Bitcoin is trying to find a bottom here this afternoon after slipping below the $53K level overnight, currently just above the $54K but not yet showing signs o a breakout:
Chinese markets are seeing some strong selling post the PMI print with the Shanghai Composite currently down 0.5% to 3457 points while the Hang Seng Index is taking back all its recent gains and then some, down 1.5% higher to 28856, again rejecting resistance at the 29000 point level. With Japanese markets closed, trading in the USDJPY pair was also muted with a very small pullback below the 109 handle again:
The ASX200 was hit with a near 1% loss going into the close, down to 7018 points, while the Australian dollar continues to reject overhead resistance at the 78 handle as it swings along a tight trading range here, basically finishing the week where it started:
Eurostoxx and S&P futures are pulling back but not as much as Asian shares going into the London open, with the four hourly chart of the S&P500 showing price really wanting to get into the stratosphere and make another new record high, but momentum is waning here with some wide ranges overnight possibly pointing to more downside volatility ahead:
The economic calendar finishes the week with a bang, namely German and EZ wide flash GDP results for the first quarter, followed by the US core PCE measure and the Chicago consumer sentiment print.
Have a good weekend and stay safe!