Asian stocks finished lower today as earnings disappointments pressure US indices. So far, the results season has been better than expected. With global leading indicators continuing to show the deterioration in the manufacturing sector particularly in Europe, global equities might correct after the recent highs. U.S. trade negotiators will likely visit China next week for their first face-to-face talk with Chinese officials since the G20 meeting.
The Nikkei225 ended 0.58 percent lower at 21,629, the Hang Seng finished 0.45 percent lower at 28,467. The Shanghai Composite ended 0.16 percent lower to 2,932. while in Singapore, the FTSE Straits Times index finished 0.82 percent lower to 3,353. Australian equities trading lower, The ASX 200 is retracing from near record highs and is sliding 0.2% to 6804.5.
European equities started mixed the day, DAX30 is adding 0.19 percent to 12,382, CAC40 is 0.01 percent higher at 5,578 while the FTSE MIB in Milan is trading 0.33 percent lower at 21,829. The London Stock Exchange is 0,08% percent higher to 7,495 after yesterday’s correction.
In commodities markets, crude oil trades 0.37 percent higher at $56.23 as traders turn cautious on recent tensions in the Middle East. Brent oil is trading 0.16% higher at $63,36 per barrel despite major oil producers have agreed to cut output. Gold is trading lower at 1,415 keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,452.90 high.
In cryptocurrencies, Bitcoin (BTCUSD) trades lower today, breaking below the 10,000 mark, and trades at 9,707 hitting the daily low at 9,626 and the daily high at 9,939. Bitcoin tests the 50-day moving average, the previous two times it managed to rebound from that point. Immediate support for BTC stands now at $9,205 Friday’s low while next support stands at 9,000. On the upside, strong resistance now stands at 13,138 recent high and then at 13,500 round figure. Ethereum (ETHUSD) adds gives up 3 dollars and trades at 215 with capitalization now to 23.6 billion. On the upside, the immediate resistance stands at 317, Friday’s high, while the support stands at the 200 round figure. Litecoin (LTCUSD) also trades lower at 91.15. The crypto market cap now stands above $269.5 billion.
On the Lookout: US GDP growth for the second quarter will attract investors interest later today. Tokyo inflation figures came out 0.1% above expectations, Singapore Industrial Production (MoM) above expectations (-0.7%) in June: Actual (1.2%)
Crude oil traders are waiting for the Baker Hughes US Oil Rig Count data, due at 1700 GMT.
Trading Perspective: In forex markets, USD continues higher 0.09 percent at 97.88, the Aussie dollar trades 0.10 percent lower at 0.6933, while Kiwi also trades lower at 0.6650.
GBPUSD is trading 0.14% lower at 1.2442. Major support now stands at 1.2381 Thursday’s low which if broken might accelerate the slide further towards 1.23 round figure. On the upside, immediate resistance now stands at 1.2662, the 50-day moving average, while more offers will emerge at 1.2888, the 200-day moving average.
EURUSD gives up 0.08 percent to 1.1137, facing the strong support at 1.1101 the yearly low, which if the pair manages to close below will open the way to 1.1050. On the upside, immediate resistance stands at 1.1200 round figure.
Euro futures markets open interest increased by 8,500 contracts while volume decreased by 2,500 futures contracts.
USDJPY is trading flat at 108.63 having hit the daily low at 108.55 and the daily high at 108.73. USDJPY pair will find support around 107.50 round figure and then at 107.00. On the upside, immediate resistance for the pair now stands at 108.98 the recent high and then at 110.04 the 100-day moving average.
USDCAD is trading 0.07 higher at 1.3173 and continues the rebound from the lows around 1.30 amid USD strength, and the retreat in crude oil prices, Canada’s main export item seems to have added further weakness in the Canadian Dollar (CAD). The pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, immediate resistance now stands at the 1.32 zone before an attempt to 1.3450 recent high from 31st May.