The bloodbath in Chinese tech stocks has abated slightly although it has spilled over into other Asian stocks with overseas markets last night not helping with the risk taking despite some stellar corporate earnings on Wall Street. The Aussie dollar was relatively stable through the inflation print while gold has found some life by breaking out above the $1800USD per ounce level in the wake of a slightly weaker USD:
The Shanghai Composite is down 0.4% to 3366 points while the Hang Seng Index is finally stabilising a little bit, up 0.6% to 25250 points as the self induced selloff stops for one session for Chinese tech and education stocks. Japanese stocks are getting caught up in the risk off mood, with the Nikkei 225 closing nearly 1.4% lower at 27581 points. The USDJPY pair has stabilised just below the 110 handle although momentum on the four hourly chart has gone into the negative zone:
Australian stocks are getting jittery in the wake of the Chinese tech stock selloff with the ASX200 pulling back 0.7% to finish at 7379 points. Meanwhile the Australian dollar absorbed the latest (and late) inflation print without much movement, continuing to deflate after rejecting overhead ATR resistance, receding back to the mid 73 level going into the London open:
Eurostoxx futures are up 0.2% while S&P futures are pulling back slightly going into the European open with the four hourly chart of the S&P500 showing price stabilising just below the recent record highs as momentum continuing to revert from its overbought phase. Continued upside depends on more outperforming on corporate earnings this week:
The economic calendar continues with German consumer confidence and the latest FOMC meeting.