Asian stocks are still in bear market mode going into the end of the trading week with risk sentiment remaining in defensive positions across the risk complex. The USD remains strong against the major currencies, while oil prices have been steady with Brent crude just above the $91USD per barrel level while gold has also remained depressed, still well below recent weekly support at the $1700USD per ounce level, currently at $1672:
Mainland Chinese share markets are heading lower into the end of the trading week with the Shanghai Composite down 0.4% to 3096 points while the Hang Seng Index is having a similar move lower, down 0.4% at 18069 points. Japanese stock markets are still selling off with the Nikkei 225 closing 0.6% lower at 27153 points while the USDJPY pair is basically unchanged following its overnight volatility, still hovering just above the 142 handle:
Australian stocks were the worst in the region with the ASX200 losing nearly 2% to close at 6571 points, playing catchup after yesterday’s holiday. The Australian dollar is slowly moving lower with a retracement back down to the 62 handle and almost back again at its recent weekly lows:
Eurostoxx and US futures are slowly depressing lower as we go into the London session with the S&P500 four hourly futures chart showing continued lower price action. Medium term and possibly psychological long term resistance at the 4000 point level seems unattainable at the moment with support at 3800 points a distant memory:
The economic calendar finishes the week with European and US flash manufacturing PMIs.