Risk markets remained in sell mode on Friday night, with US domestic economic data still suggesting the Federal Reserve will be on the war path with more rate hikes. Stocks fell across both sides of the Atlantic and it looks like selling will continue here in Asia on the open. The USD was largely unchanged against Euro, which remains bang on parity, but rose slightly against the major currencies, with the Australian dollar still on the ropes. Bond markets had some mild volatility across the yield curve with 10 year Treasury yields lifting slightly to the 3.45% level with interest rate expectations still locking in a 75bps rise at the next Fed meeting. Crude oil closed basically unchanged with Brent stuck at the $92USD per barrel level while gold tried to stabilise after breaking sharply below the $1700USD per ounce level.
Looking at share markets in Asia from Friday’s session where Chinese share markets continued their mid week selloffs with the Shanghai Composite losing more than 2% to 3216 points while the Hang Seng Index slumped nearly 1% lower, closing at 18761 points. The daily futures chart was showing a bearish engulfing candle mid week which forecast this slump as it continues with a distinct lack of buying support. The bear market continues with daily momentum nowhere near out of its negative funk:
Japanese stock markets also joined in the selling fun, as the Nikkei 225 closed 1.1% lower at 27567 points. The daily chart shows this significant slump in another bearish engulfing candle wiping out all the gains of the previous trading week. Daily momentum remains negative and nearly oversold so watch for some support to be tested at the recent daily low sessions around the 27500 point level:
