A sea of red across stock market here in Asia following a mixed mood overnight with hesitation possibly turning to fear across the risk complex as the US inflation print looms tomorrow night. The USD remains in a weakish state as Euro and Pound Sterling start to firm going into the London session, although gold is still unable to climb back above the $1900USD per ounce level. Bitcoin is either putting in a possible bottom here or just waiting to selloff sharply again as margin calls start to really bite as price was pushed down towards the $30K level overnight. Its consolidating here at the post-rally $33K level as a classic swing play setup – which could be mistaken for a bottom – builds:
The Shanghai Composite is the standout, rising a little over 0.3% going into close at 3591 points, while the Hang Seng Index is falling back alongside everything else, down 0.2% to 28714 points. Japanese stocks continue to struggle with the Nikkei 225 closing 0.3% lower at 28860 as the USDJPY pair tightens around the 109.50 midzone with very low volatility that should spell trouble ahead. As momentum wanes watch for a breakout either side of the tight moving average band:
The ASX200 finally lost some ground, falling some 0.3% to close at 7270 points in the wake of a declining consumer confidence print, as the once-resurgent Australian dollar still can’t get past its previous weekly highs that are acting as resistance alongside the medium term downtrend from the start of the year, declining into the 77.40 zone:
Eurostoxx and S&P futures are sliding down going in the London open with the four hourly chart of the S&P500 still elevated and really wanting to advance past the previous record high, but there seems to be an anchor here at the 4230 area with momentum no longer overbought and ready to invert:
The economic calendar is relatively quiet tonight with German trade balance and US mortgage applications the only major prints of note.