Asian stocks are continuing their selloff after a very uneasy session on Wall Street overnight as Chinese shares flopped on more bad news from their imaginary property market. This is in the backdrop of an expected very bearish Federal Reserve as the Jackson Hole conference gets underway soon. Despite some minor falls overnight, the USD is still beating up Euro and Pound Sterling with the former still below parity. Meanwhile oil prices are edging higher on supply problems with Brent just above the $100USD per barrel level while gold is also trying to clawback its losses with a vain attempt to get back to the $1750USD per ounce level that is yet to find traction:
Mainland Chinese share markets started steady but have sold off throughout the entire session, with the Shanghai Composite closing nearly 2% lower at 3215 points while the Hang Seng Index is still going backwards, down 1.1% and still below the 20,000 point level at 19277 points. Japanese stock markets are still falling as well with the Nikkei 225 closing 0.4% lower, to extend the losses below the 29000 point level at 28313 points. Meanwhile the USDJPY pair remains overextended and in a pause mode as it holds just above short term support at the mid 136 level:
Australian stocks were the odd ones out today with the ASX200 actually closing more than 0.5% higher, finishing at 6988 points. The Australian dollar meanwhile remains under pressure, retracing back to the 69 cent level against USD after a fake breakout overnight:
Eurostoxx and US futures are pulling back again as we head into the London session, as the S&P500 four hourly futures chart shows price action continuing its steep retracement below trailing ATR support, now just above the 4200 point level as the former rally gains are almost wiped out:
The economic calendar will include US durable goods orders and pending home sales data.