A sea of red across Asian stock markets today in the fallout from the Credit Suisse selloff in Europe overnight as the Australian dollar remains in the doldrums despite a warmish unemployment print locally. Other undollars are not faring much better although they are off their lows from last night as bond markets continue to dominate risk taking decisions. Meanwhile, oil prices have lifted marginally but Brent crude remains quite depressed after its very broad selloff overnight, currently at the $74USD per barrel level. Meanwhile gold is holding to most of its overnight gains and remains well bid here above the $1900USD per ounce level:
Mainland Chinese share markets are falling going into the close, with the Shanghai Composite down nearly 0.5% to remain well below the 3300 point barrier at 3245 points while the Hang Seng has retraced yet again, currently down 1.5% at 19235 points. Japanese stock markets remain unable to escape the downward volatility after a scratch session previously, with the Nikkei 225 about to close 0.9% lower at 26973 points while the USDJPY pair has failed to lift off its recent low and is looking to test the start of week lows at just above the 132 level:
Australian stocks had a steep fall at the open with the ASX200 down 2% before recovering somewhat in afternoon trade but still well off recent highs, closing 1.4% lower, now below the 7000 point level, finishing at 6965 points. The Australian dollar was pushed below the 66 cent level overnight on the financial contagion woes but lifted slightly alongside other undollars today, not because of the unemployment print which came in a little hotter than expected:
Eurostoxx and US futures aren’t looking very healthy here with the S&P500 four hourly chart showing price action holding just below the 3950 point level but is banging up against overhead resistance. A point of control is developing here, albeit with a bearish bias so watch for moves either side of this symmetrical triangle pattern:
The economic calendar includes US housing permits, but before that the important ECB interest rate meeting and press conference.