European Open: Asian Markets Trade Lower as Evergrande Falls 18%

Bears controlled the overnight session ahead of a busy week of central bank meetings and economic data, as China’s second largest property group fell nearly 20%.

Stocks (1)

Asian Indices:

  • Australia's ASX 200 index fell by -144.2 points (-1.95%) and currently trades at 7,259.50
  • Hong Kong's Hang Seng index has fallen by -979.11 points (-3.93%) and currently trades at 23,941.65

UK and Europe:

  • UK's FTSE 100 futures are currently down -23 points (-0.33%), the cash market is currently estimated to open at 6,940.64
  • Euro STOXX 50 futures are currently down -26.5 points (-0.65%), the cash market is currently estimated to open at 4,104.34
  • Germany's DAX futures are currently down -99 points (-0.64%), the cash market is currently estimated to open at 15,391.17

US Futures:

  • DJI futures are currently down -166.42 points (-0.48%)
  • S&P 500 futures are currently down -80 points (-0.52%)
  • Nasdaq 100 futures are currently down -31.25 points (-0.71%)


Learn how to trade indices


Indices

Public holidays in Japan, China and South Korea meant trading volumes were lower during the Asian session, and China is also on a public holiday tomorrow. For the markets that were open, sentiment remained fragile with a weak lead from US markets on Friday and woes surrounding Evergrande Group. The stock fell as much as -18% today (currently down 16.9%), taking its YTD declines to -85.9%. The Hang Seng was the weakest performer with a -4.1% decline during its most bearish session in nearly 2-months.  The ASX 200 fell -1.9% and hit a 2-month low.

US futures markets are lower, with the S&P 500 E-minis contracts falling as much as -0.8% overnight. Having met resistance at its 50-day eMA the next support level for bears to target is around the 4347.75 low.

The FTSE 100 is also on the back foot after the index closed below 7,000 on Friday. The 200-day eMA around 6880 and lows around 6812/23 are next support levels for bears to conquer, and our bias remains bearish below 7000.


FTSE 350: Market Internals


FTSE 350: 4035.76 (-0.91%) 17 September 2021

  • 164 (46.72%) stocks advanced and 180 (51.28%) declined
  • 17 stocks rose to a new 52-week high, 14 fell to new lows
  • 69.52% of stocks closed above their 200-day average
  • 54.7% of stocks closed above their 50-day average
  • 16.24% of stocks closed above their 20-day average

Outperformers:

  • + 9.11%   -  Restaurant Group PLC  (RTN.L) 
  • + 5.99%   -  Tui AG  (TUIT.L) 
  • + 5.81%   -  Darktrace PLC  (DARK.L) 

Underperformers:

  • -8.07%   -  Anglo American PLC  (AAL.L) 
  • -7.14%   -  Oxford BioMedica PLC  (OXB.L) 
  • -4.80%   -  BHP Group PLC  (BHPB.L)

 

Forex:

The New Zealand dollar fell to a 3-week low overnight after its business PSI contracted at its fastest rate since April 2020. Falling to 34.5 from 56.8 means the -22.3 point drop is its fastest on record. With Auckland remaining in level 4 lockdown it’s unlikely we will see a sharp comeback next month, although daily cases are now -28% from their peak so they do appear to be on the path to recovery.

GBP/JPY fell to a 3-week low after breaking 150.83 support. The Japanese yen and US dollar remained firm due to safe-haven flows, and AUD and CAD are currently the weakest major currencies.


GBP/USD has broken below its 200-day eMA overnight after breaking trend support on Friday. It’s fallen around -1.5% since its September high, which still leaves around -0.75% until it reached the August low. Our bias remains bearish below 1.3765 although today’s high could also be used to fine tune risk management.


Learn how to trade forex


Commodities:

Copper futures fell in line with appetite for risk, with prices currently probing the July low and trading at their lowest level in 4-weeks. We may see some follow through today if sentiment remains weak as traders across Europe and US respond to overnight moves.

Gold prices are traded below 1750 overnight, although prices have gone on to trade back above it by the close over the previous two days.

Oil prices continued lower for a third consecutive day, although not at an alarming rate. We continue to suspect the current price action is corrective, so looking for a base to form around or above $70.


Up Next (Times in BST)

You can view all the scheduled events for today using our economic calendar, and keep up to date with the latest market news and analysis here.


How to trade with City Index

Follow these easy steps to start trading with City Index today:

  1. Open a City Index account, or log-in if you’re already a customer.
  2. Search for the market you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.

More from Commodities

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.