Risk aversion generally dominates the global markets today. Following selloff in Asia, major European indexes open lower and are trading down around -2%. DOW future is also losing around -500pts. Swiss Franc and Yen are overwhelmingly the strongest ones for the day, as followed by Euro and Dollar. Commodity currencies are the worst performing, Focus will now turn to developments in US stocks and yields, on whether they could "bend up " before closing. Technically, we'd believe that the key level to watch is 34k handle in DOW, which is slightly below 55 day EMA and medium term trend line support. Sustained break there would at least bring deeper fall back towards 33271.93 support. That might trigger even strong rally in Yen and Franc. However, defending 34k could, at least, help Yen crosses stabilize from the current level. In Europe, at the time of writing, FTSE is down -1.93%. DAX is down -2.01%. CAC is down -2.29%. Germany 10-year yield is down -0.014 at -0.308. Earlier in Asia, Nikkei dropped -0.88%. Hong Kong HSI dropped -2.89%. China Shanghai SSE dropped -0.79%. Singapore Strait Times dropped -1.08%. Japan 10-year JGB yield closed flat at 0.028. |
