News & Analysis
Asian stocks mixed – Nikkei lower – AUS200 fights back above 6310 – Risk positive in Asian session trade; Gold drops to new lows
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18:30 GBP Retail Sales
Stocks maintained declines in last night’s session. The Dow, S&P500, DAX and FTSE closing lower. Turkey continues to hurt investor sentiment in Europe. U.S markets lower due to Turkey and tech sector declines. The USD faded from highs but risk remained on the defensive. Gold continued to tank losing close to $20.
In today’s session risk has been on the rebound. Local shares (ASX200) lower after yesterday’s close with the energy and material subindexes leading the way following a fall in commodity prices overnight. The AUS200 is trading 35 points higher back above 6310. Yesterday the ASX200 closed at new records. Stocks in Asia are trading lower after weaker European and US leads. The Nikkei is 47.22 pts lower. Markets in China are lower the Hang Seng -224 and the Shanghai Composite is -24.47.
Chinese tech giant Tencent reported a dip in quarterly profit on Wednesday. The iShares MSCI Emerging Markets ETF (EEM) moved into bear-market territory overnight.
Looking at currencies, after a test lower risk has settled and is trading higher to the Japanese Yen. Risk is also trading higher to the USD. The AUDUSD +20 pips after turning it around from a 21 pip loss. Oil after last night’s plunge off the back of higher than expected U.S. crude stockpiles has set a new weekly low, buyers have pared loses price slightly higher at $64.45.
Gold was the big mover this morning, after its plunge last night it dropped a further $15 to new weekly lows. Buyers have taken price off lows. We’ve seen a $200 drop from monthly highs to this morning’s low and a drop of close to $50 so far this week.
Data wise; Australian employment data came in mixed, the employment change missed expectations at -3.9K, but unemployment decreased to 5.3%. Tonight traders will be looking to the UK Retail sales data coming out at 18:30.
Good Trading from Eightcap
Sources; CNBC – All times are AEST
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