Stock markets are putting on a mild bounceback across Asia following the volatile moves on overseas markets overnight, with Wall Street overreacting to the latest FOMC minutes. Some viewed the talk around inflation concerns as hawkish, sending up the USD and bond yields as a result, but some calm has returned to risk markets today. Crypto currencies remains under enormous pressure with Bitcoin bouncing back after a violent overnight selloff taking it down below the $30K level at one stage off by more than 50% from its historic high. Is the bottom in yet or are some more steps down on the way?
The Shanghai Composite has been oscillating all session, currently putting in a scratch result to remain above the 3500 point level, while the Hang Seng Index returned from its holiday in a dour mood, down 0.6% to 28420 points. Japanese stocks are floating alone this time with the Nikkei 225 closing only 0.3% higher to 28140 points. Meanwhile the USDJPY has pulled back slightly to just above the 109 handle after bouncing off off four hourly ATR support last night:
Just like the previous session, the ASX200 moved the furthest, this time lifting more than 1.2% on the latest jobs figures print, closing back above the 7000 point level at 7014. Meanwhile the Australian dollar was able to look through the end of the jobs boom with a small blip up to the mid 77 handle against USD, still unable to breach short term resistance nor break through weekly support just below:
Eurostoxx and S&P futures are up meekly in response to the small bounce here in Asia with the four hourly chart of the S&P500 showing price still gravitating around the 4100 point area as price weighs a possible return back to last week’s intrasession low at 4000 points proper:
The economic calendar tonight includes the latest weekly initial jobless claims out of the US.