A bloodbath in Chinese tech stocks is putting a dampener on risk taking here in Asia while European and US futures indicate lower opens this evening. Risk currencies like the Aussie dollar are falling back while commodities are holding on, although gold continues to drop below the $1800USD per ounce level. Bitcoin is holding on too its Monday morning gains, steady just above the $37K level but the real test later tonight will see if it can HODL above trailing support:
The Shanghai Composite closed 2.5% lower to 3381 points while the Hang Seng Index is off by another 1000 points, down 4% to 25447 points as the self induced blood of bath continues for mainland Chinese tech and education stocks. Japanese stocks are ignoring the risk off mood, with the Nikkei 225 closing nearly 0.5% higher at 27970 points. The USDJPY pair has pulled back from its Friday night highs as it threatens to break below the 110 handle as momentum on the four hourly chart continues to revert to mean from its overbought levels:
Australian stocks are playing catchup with a solid move higher above the 7400 point level as the ASX200 lifts 0.5% exactly. Meanwhile the Australian dollar continues to deflate after rejecting overhead ATR resistance, now back to the mid 73 level going into the London open:
Eurostoxx and S&P futures are pulling back 0.3 to 0.5% going into the European open with the four hourly chart of the S&P500 showing price stabilising at the recent record highs as momentum slightly reverts from its nicely overbought phase. Continued upside depends on more outperforming on corporate earnings this week:
The economic calendar continues with US durable goods orders and house price index results.