A very mixed start to the trading week here in Asia with mainland Chinese and Japanese stock markets closed, but that hasn’t stopped the selloff on the back of the Evergrande and iron ore price implosions, with local markets down over 2% while the Australian dollar dives deeper as well. The USD remains firm against all the risk currencies with gold still flummoxed at well below the $1800USD level, barely holding on here at $1750:
The Shanghai Composite was closed but the Hang Seng Index is a harbinger for steep falls tomorrow with the selloff steepening, losing over 3% to be at 24123 points for a new monthly low. Japanese markets were closed but Nikkei 225 futures are indicating a walloping on the open , with the USDJPY pair about to rollover again as it heads back below the 110 handle having failed to make a new weekly high in its last rally:
Australian stocks sold off fast and fierce with the ASX200 closing more than 2% lower at 7248 points as medium term support was wiped out last week in advance of today’s rout. Meanwhile the Australian dollar was immediately pushed down and is heading towards the 72 handle with momentum looking towards retest the August lows:
Eurostoxx and S&P futures are down over 0.7% so far as we head into the London open with the four hourly chart of the S&P500 showing price diving deep below the previous support level above 4400 points with this dip not yet having the BTFD crowd stepping in, are we due for a correction?
The economic calendar starts the week very quietly without much on the agenda, apart from some Treasury auctions.