Dead cats are bouncing all over the place today in response to what was a tepid session in overnight stock markets with Asian shares very mixed alongside downbeat Wall Street and European futures. A run on safe havens is seeing Euro and Yen beat back the stronger USD while the Australian dollar is about to drop precariously through the 71 handle for a new major low. Bitcoin has given up all its overnight gains, currently below the $57K level while gold is trying to pick itself off the floor following last night’s swing back, but could run into trouble if Fed Chair Powells makes any noise about putting off the taper tonight in the wake of the new COVID variant breakout:
Chinese shares are mixed again with the Shanghai Composite up slightly going into the close, currently at 3567 points while the Hang Seng Index is in a major slump, down nearly 2% to corss major support levels, currently at a yearly low at 23415 points. Japanese markets are trying to stabilise but can’t catch a bid in the wake of a stronger Yen with the Nikkei 225 closing 0.6% lower at 28104 points with the USDJPY pair unable to bounce back from its devastating 200 pip drop on Friday night, rejecting overhead resistance at the 114 handle to be at the low 113’s this afternoon:
Australian stocks had a mild session with the ASX200 eventually closing 0.2% higher at 7256 points as the Australian dollar is making a new low, about to break its nascent bottom at just above the 71 handle as the risk proxy shows the way aheads:
Eurostoxx and S&P futures are in reversal mode with the latter down nearly 1% going into the London open as this recovery swiftly turns into a dead cat bounce. The S&P500 four hourly chart shows price unable to cross above trailing ATR resistance at the 4670 point level with momentum rolling back over into oversold mode:
The economic calendar is packed again with German unemployment and core inflation prints for Europe while in the US its the November consumer confidence print while Fed Chair Powell is up at Congress (the opposite of Progress of course).