 Markets are generally in deep risk-off mode today, as China property fears spread from Hong Kong stocks to European to US. Yen remains the strongest one as rally extends, which Swiss Franc is trying to catch up. Dollar is is losing some ground but stays much better than others. Canadian Dollar is currently the worst performing, as WTI oil is back pressing 70 handle. Aussie is the second worst while Sterling is the third. Technically, DOW is ready to gap down today and could have a first test on 33741.16 structural support. We'd see DOW would dive through this support level within a few day. If that happens, the stage would be set for a deeper correction, to up trend from 26143.77 to 35631.19, towards 38.2% retracement at 32006.99 at a later stage. And, such development would likely be accompanied by downside breakouts in Yen crosses. In Europe, at the time of writing, FTSE is down -1.89%. DAX is down -2.92%. CAC is down -2.73%. Germany 10-year yield is down -0.0464 at -0.323. Earlier in Asia, Japan and China were on holiday. Hong Kong HSI dropped -3.30%. Singapore Strait Times dropped -0.96%. |
