Macro Afternoon
by Chris Becker
A flat end to the week as the window dressing month end meme takes place across risk assets with most stock markets pulling back here in Asia. Besides the usual end of month reshuffle, risk is still waiting Trump’s policy announcement on China, but it seems he’s too busy having a dummy spit about Twitter instead.
In mainland China, the Shanghai Composite is getting some traction going into the close, up 0.2% to 2851 points, while the Hang Seng Index is off by 0.7% to 22969 points. A new daily low is ominous for the now non-independent city-state, keeping well below previous firm support at the 23300 point level, and ready to break below the long term trendline for a return to the March lows:
Japanese share markets are getting a bit anxious following their way too fast and too far rally, with the Nikkei 225 slipping only 0.2% to 21877 points, while the USDJPY pair fell sharply throughout the session to breakdown to the 107 handle:
The ASX200 was the biggest loser with shorts finally paying off as the market fell 1.6% to 5755 points. Meanwhile the Aussie dollar is trying to breakout again after a sharp reversal and fill volatile session overnight, now back to the mid 65’s here before the London open and remaining well supported:
Eurostoxx futures are down 1% or so with S&P futures flat going into the last session of the week. It’s unknown if the chaos in Minnesota will have any effect on the market – its not like Wall Street gives a shit about 100,000 dead Americans so far anyway – with the most likely catalyst coming from the White House on any moves on China:
Have a good weekend and stay safe out there!
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