25 Aug 2015
S&P futures up 1.5%, key focus Shanghai composite
FXStreet (Bali) - S&P500 futures are up 1.5%, helping to temporarily underping riskier assets such as AUD and to a lesser extent the US Dollar, which has its own troubles as market volatility probably forces the Fed to delay its tightening cycle until end of the year or even until 2016.
Total focus in Shanghai Composite
However, the main game will be on the Shanghai Composite (SHCOMP) which appears to have its own dynamics, and where the failure by Chinese authorities to neither provide further easing over the weekend through RRR cuts, not intervene as future contracts were limit down, only saw the panic and flight to safety increase.
Euro, Yen to stall rallies? Sentiment-dependent
Should market conditions remain buoyant and green boards in Asian equity indexes return, expect the Japanese Yen and Euro to be punished severely as longs liquidate positions and intraday leveraged accounts try to make their day. The Aussie and Kiwi should be the major beneficiaries should more stable market conditions return. On the contrary, should sentiment turn sour again, a repeat of familiar dynamics seen on Monday is due.
Total focus in Shanghai Composite
However, the main game will be on the Shanghai Composite (SHCOMP) which appears to have its own dynamics, and where the failure by Chinese authorities to neither provide further easing over the weekend through RRR cuts, not intervene as future contracts were limit down, only saw the panic and flight to safety increase.
Euro, Yen to stall rallies? Sentiment-dependent
Should market conditions remain buoyant and green boards in Asian equity indexes return, expect the Japanese Yen and Euro to be punished severely as longs liquidate positions and intraday leveraged accounts try to make their day. The Aussie and Kiwi should be the major beneficiaries should more stable market conditions return. On the contrary, should sentiment turn sour again, a repeat of familiar dynamics seen on Monday is due.