Macro Afternoon

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Asian stock markets continue to selloff in response to the wider risk-off mood prevailing on overseas markets overnight, with oil prices off by nearly 10% in response to both more supply and probable economic slowdowns as the COVID 19 delta variant sparks widespread concern. Bitcoin has broken below the $30K level and its start of year price as this wipeout – now off by more than 50% since April – gathers pace:

The Shanghai Composite is down nearly 0.5%, currently at 3522 points while the Hang Seng Index continues its own correction, down 1.2% to remain well below the 28000 point level, currently at 27169 points. Japanese stocks remain in freefall with the Nikkei 225 about to close 0.6% lower at 27472 points as the USDJPY pair remains stuck below the 110 handle but relatively stable from last night’s action as Yen safe haven buying keeps the strong USD at bay:

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Australian stocks almost escaped the risk off mood with the ASX200 about to close only 0.3% lower at 7266 points as the Australian dollar remains quite depressed here, hovering just above the 73 handle as it absorbs the commodity market selloff and reweighing continues against USD:

Eurostoxx and S&P futures are bouncing around nervously here going into the London open with the four hourly chart of the S&P500 showing price overshooting from last night’s rout and ready to have a stab at getting back above the 4300 point level but this looks like a dead cat bounce:

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The economic calendar continues with a quiet session, just US housing starts for June.