Asian stocks are not responding in kind to Wall Street’s post-US unemployment rally from Friday night with mild selloffs and scratch sessions the order of the day to star the week. Bitcoin gapped significantly higher over the weekend but has given most of it back to be just over the $34K level with no real breakout evident yet on the four hourly chart:
The Shanghai Composite is selling off again today, but only down 0.2% to be at 3511 points while the Hang Seng Index is going further, down 0.5% to 28151 points. Japanese stocks are in a similar boat with the stronger Yen not helping as the Nikkei 225 loses 0.5% to be at 28626 points as the USDJPY pair barely holds after the Friday night rout above the 111 level here:
Australian stocks are the only market up across Asia, but only just with the ASX200 up only 4 points to remain just above the 7300 point level going into the close. Meanwhile the Australian dollar has been unable to extend its gains from Friday night, stalling out after the weekend gap to be squeezed down to the 75 handle proper:
Eurostoxx and S&P futures are quite flat going into the London session with the four hourly chart of the S&P500 suggesting short term price action is way overextended here past the 4300 point level on the back of Friday’s good but not good enough NFP print. There is the potential for a retracement back to ATR trailing support but highly unlikely:
The economic calendar comprises mainly services PMI surveys across Europe.