The selloff continues here in Asia as the fallout from the Evergrande collapse spreads throughout the region, with only local stocks rebounding on the latest unemployment figures. The USD is firming once more against the risk currencies with gold still holding below the $1800USD level, while Bitcoin has picked up again, pushing through the $48K level as it discards short term resistance that had held since last week’s dump and pump:
The Shanghai Composite fell sharply after gapping higher at the start of the session, falling 1.2% to be just above the 3600 points level while the Hang Seng Index has continued its very sharp retracement, falling another 2% lower to finish well below the 25000 point level at 24563 points. Japanese stocks are also pulling back for the second consecutive session with the Nikkei 225 down 0.6% to 30323 points, not helped by a much stronger Yen as the USDJPY pair remains well below the 110 handle for a new weekly low:
Australian stocks were the only market to not experience any falls, with the ASX200 actually lifting 0.6% to 7460 points while the Australian dollar was pushed back down to the 73 handle following today’s unemployment figures, with momentum looking towards retesting the lows:
Eurostoxx and S&P futures are holding on to last night’s moves with the former up 0.2% or so, while the latter are again flat heading into the London open. The four hourly chart of the S&P500 shows price hovering at the 4470 point level with momentum still not yet positive in the short term:
The economic calendar includes Euro wide trade balance figures, then US retail sales for August and weekly initial jobless claims.