Risk markets are still pulling back as we head into the end of the trading year with Wall Street again selling off overnight, albeit at a slower pace. The USD continued to reasserted itself against most of the major currency pairs although Euro is trying to hold on while the Australian dollar remains depressed below the 67 cent level. US Treasury yields lifted higher though with the 10 year issue spiking above the 3.5% level while the commodity complex saw oil prices stabilise with Brent crude retracing back above the $80USD per barrel level as gold also tried to bounceback above the $1800USD per ounce level, not successfully but able to not make a new daily low in the process.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets sold off sharply heading into the close with the Shanghai Composite down over 1.9% to almost cross below the 3100 point level, finishing at 3107 points while the Hang Seng Index was off by just over 0.5% at 19352 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 sessions, Watch support which must be strrongly defended at the 17600 area as the low moving average is now coming under pressure next as overhead resistance is just too strong:
Japanese stock markets continued their own steep falls with the Nikkei 225 closing more than 1% lower to 27237 points. Futures are indicating another poor start today 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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