Stocks are pulling back across the region as a cavalcade of concerns create a cautious mood with fears of inflation and Evergrande’s default weighing the most. The USD remains strong against most of the risk currencies, although the USDJPY pair finally pulled back, while gold has slightly pushed higher to the $1760USD per ounce level. Meanwhile Bitcoin has paused at the $57K level, as it barrels in on its previous record high, but resistance is slowly building in the short term:
The Shanghai Composite closed 1.7% lower to 3528 points while the Hang Seng Index is follow along by taking back most of its previous surge, down 1.6% to the 24906 point level. Meanwhile Japanese markets reversed gear with the Nikkei 225 closing 0.9% lower to 28230 points. The USDJPY pair finally stopped going higher as momentum was pushing through extreme overbought levels, heading straight back to the 113 level:
Australian stocks were the relative winners, but its a moot point as the ASX200 remained under the 7300 point level, closing 0.3% lower to 7280 points while the Australian dollar is pulling back slightly after pushing right through the 73 handle previously:
Eurostoxx and S&P futures are slowly tracing backwards following the poor start to the trading week, with the four hourly chart of the S&P500 showing price heading to the ATR support level at 4330 points with the next stage of support at below 4300 points very close by:
The economic calendar ramps up with UK unemployment, the German ZEW survey and then the latest US CPI print.