Asian share markets are having a fun start to the trading week with the broad selloff on Wall Street on Friday night echoing here with Japanese shares in near freefall and the VIX on an epic ride higher. The seismic shift in Federal Reserve intentions continues to resonate throughout risk markets with the USD strengthening across the board, as gold tries to find a bottom below the $1800USD per ounce level while Bitcoin continues to get dumped as it heads back to the previous lows, now below the $34K level:
The Shanghai Composite continues to stall with no real direction today, about to finish a handful of points lower at 3521 points, while the Hang Seng Index was hit hard on the open, closing 1.6% lower at 28340 points. Japanese stocks had the biggest falls though, with the Nikkei 225 slammed nearly 3.5% lower or 1000 points lower to 27955 points as the USDJPY pair tries to get back above the 110 handle as it previous mid week retracement turns into a possible correction down to the previous weekly lows:
Australian stocks had a torrid start to the trading week with the ASX200 closing nearly 2% lower on the back of lower bank stocks at 7235 points while the Australian dollar is barely keeping on here just above 75 handle as momentum reverts back to the mean after being oversold all last week:
Eurostoxx and S&P futures are trying to recover lost ground going in the London open with all eyes on the VIX which is sending volatile signals across the board. The four hourly chart of the S&P500 shows momentum still heavily oversold and the possibility exists for a volatile swing higher from here, but price action still looks tenuous at best:
The economic calendar starts the week with a few Treasury auctions and a speech by ECB President Lagarde but not much else.