The selloff continues here in Asia as the fallout from the Evergrande collapse spreads throughout the region, with even Japanese stocks taking a tumble. The USD is firming once more against the risk currencies although gold is just holding above the $1800USD level, while Bitcoin has peaked again at just below the $47K level as it comes up against short term resistance that has held since last week’s dump and pump:
The Shanghai Composite has oscillating around the 3650 point level all session, eventually finishing 0.1% lower while the Hang Seng Index has continued its very sharp retracement, closing 1.5% lower at 25075 points. Japanese stocks finally succumbed to the selloff with the Nikkei 225 down 0.5% to 30511 points, not helped by a much stronger Yen as the USDJPY pair breaks below the 110 handle for a new weekly low:
Australian stocks had the smallest falls, with the ASX200 only falling 0.3% to 7417 points while the Australian dollar is struggling to hold fast above the 73 handle going into tomorrow’s all important numberwang print as it follows the risk off mood in stocks:
Eurostoxx and S&P futures are once again flat and tenuous heading into the London open, with the four hourly chart of the S&P500 showing price wanting to plunge to new depths as it barrels in on the 4400 point level. Momentum remains oversold with only minor support building here – watch the trendline tonight to possibly come under threat:
The economic calendar calms down a little tonight with US industrial production figures for August and then the EIA private oil data print.