Risk markets are still reeling from the succession of rate hikes from major central banks with the end of week session on Friday night seeing both Wall Street and European shares finishing well down. The USD continued to reasserted itself against most of the major currency pairs with recession fears still to the forefront although Euro is trying to hold on while the Australian dollar was pushed below the 67 cent level. US Treasury yields were contained again with the 10 year hovering just above the 3.4% level while the commodity complex saw oil prices slump with Brent crude retracing back below the $80USD per barrel level as gold tried to bounceback above the $1800USD per ounce level, almost managing to fill a volatile week to close at just over the $1793 level.
Looking at share markets in Asia from Friday’s session where mainland Chinese share markets went positive briefly mid session before falling at the close with the Shanghai Composite staying well below the 3200 point level, down 0.2% at 3167 points while the Hang Seng Index closed slightly higher at 19450 points. The daily chart is showing the typical end to a breakout that has run out of steam with momentum and price action rounding off in recent session. Watch support to remain strongly defended at the 17600 area with the low moving average to come under pressure next as overhead resistance is just too strong:
Japanese stock markets had the steepest falls in the region with the Nikkei 225 closing nearly 2% lower to 27498 points. Futures are indicating another poor start to the trading week with the very poor lead from Wall Street not helping at all as heavy resistance at the 28400 point level remains a distant memory. The rollover down to short term ATR support at the 27500 point level has now converted into a proper breakdown here so watch for more downside below:
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