A sea of red across Asian stock markets with European and Wall Street futures also looking dim as we head into the end of the trading week. Continued concerns around a Fed taper emptying the cash splash punchbowl casino that is risk markets everywhere is causing wobbles across commodity markets as well, although gold is holding on here but cannot manage to break through resistance at the $1800USD per ounce level:
The Shanghai Composite is rebounding after a pre-lunch selloff but is still 0.3% lower for the day at 3473 points while the Hang Seng Index is selling off much more sharply, off by more than 1.8% as buyers abandon the bourse, about to close at 25398 points. Japanese stocks can’t escape the carnage either with the Nikkei 225 finishing more than 1.1% lower at 27285 points while the USDJPY pair continues to push higher, albeit in whipsaw fashion but still managing to push through the 110 handle:
Australian stocks were the relative best performers in the region, with the ASX200 only losing 0.5%, but still finishing at a new weekly low at 7464 points as the Australian dollar tumbled through the 72 handle on the unemployment print, making yet another weekly and monthly low:
Eurostoxx and S&P futures are down nearly 1% going into the London open, as risk markets take a deep breath as this dip could widen into a proper correction following the FOMC minutes release. The four hourly chart of the S&P500 shows price shooting right through supposed support around the 4440 level as momentum goes into deep oversold mode as the BTFD crowd has yet to properly step in:
The economic calendar will focus mainly on the latest US initial jobless claims tonight.