A sea of red across Asian stock markets today in response to the poor start to the trading week on overnight markets as a run to safety including USD, Yen, Treasuries and bonds leaves equities at the kiddie table for dinner time. The USD is firming against almost everything as we head into tomorrow’s FOMC meeting with the Australian dollar briefly dipping below the 71 cent level while gold is edging a few dollars higher, now at the $1790USD per ounce level as Bitcoin struggles to keep its head above water, currently at $47K and unable to make any positive momentum:
Mainland Chinese shares are putting in a weak session given the news of more COVID breakouts with the Shanghai Composite down more than 0.5% to 3662 points while the Hang Seng Index is down more than 1.1% to be well below the 24000 point level. Japanese markets are also taking steps back despite some BOJ cash injections with the Nikkei 225 closing 0.8% lower at 28388 points with the USDJPY pair holding firm here in a tight band of resistance and support, sticking to the mid 113 level:
Australian stocks had the best result relatively speaking with the ASX200 putting in a scratch session to only lose a handful of points, closing at 7378 but obviously still unable to get back above the 7400 point level, which is turning into firm resistance. The Australian dollar dropped below the 71 handle briefly and is hovering just above that level this afternoon, having losing nearly 80 pips this week already, with the upcoming FOMC meeting weighing on stronger USD expectations:
Eurostoxx futures and S&P futures are sliding down going into the London open, with the S&P500 four hourly chart showing price slipping in confidence as it hovers just above trailing ATR support after failing to breakout above the former 4700 point resistance level with a bearish megaphone pattern forming ominously:
The economic calendar ramps up tonight with the latest UK unemployment rate and Euro-wide industrial production figures.