Some hope is creeping into risk markets across Asia despite further falls in stock markets overnight with Wall Street and European futures also creeping higher going into the important manufacturing PMI prints. USD is re-engaging to the upside after a slew of running to safety in Euro and Yen while the Australian dollar is finally moving higher after a better than expected GDP print. Bitcoin is dead flat, hovering just above the $57K level while gold is trying to pick itself off the floor following last night’s swift kick to the knees, getting back above short term support at the $1780USD per ounce level:
Chinese shares were able to re-engage properly with the Shanghai Composite lifting sharply going into the close, currently up 0.3% at 3575 points while the Hang Seng Index has rebounded after a series of very bad sessions, up over 1.2% to 23737 points. Japanese markets are also trying to stabilise with the Nikkei 225 closing 0.4% higher at 27935 points with the USDJPY pair able to put in a small bounceback on its own after being oversold and going through some high volatility overnight, currently at the mid 113 level but nowhere near out of trouble:
Australian stocks had a mild selloff with the ASX200 eventually closing 0.3% lower at 7235 points as the Australian dollar begins its bounceback on the back of the higher than expected GDP print, fulfilling a short term bottom pattern on the four hourly chart, although trailing ATR resistance at the 72 handle may prove too hard to breach:
Eurostoxx and S&P futures are lifting slightly going into the London open as the dead cat bounces yet again. The S&P500 four hourly chart shows price unable to cross above its own high moving average with a series of lower lows, but the long candles of support below do suggest a proper bounce is building, although trailing ATR resistance at the 4670 point level is still a long way away:
The economic calendar includes the latest German retail sales, plus final manufacturing PMI prints, then the latter again in the US with the final ISM print.