EQUITIES: China/HK Outperform, Indian Markets Weaker
The main positives today have been in terms of China and Hong Kong shares, while the trend has been less positive elsewhere, mostly notably Indian stocks, which have been weighed down by the IT sector. US and EU futures are modestly higher, but for Eminis we are slightly down on best levels for the session, last near 4170.
- The HSI is up 0.54% at the break, with the underlying tech index up by a similar amount. The CSI 300 is faring better, up 0.86%, the Shanghai Composite near 1% firmer.
- The 1yr MLF rate was held steady, as expected, at 2.75%, while there was a modest liquidity injection via the 1yr MLF. Tomorrow we also get Q1 GDP and March monthly activity figures, which are expected to show uniform improvement.
- Indian markets are noticeably weaker in the first part of trade, with the Nifty and Sensex benchmarks off by more than 1%. Tech company Infosys has slumped on weak earnings guidance and analyst downgrades. This has weighed on broader tech equity related sentiment.
- The Kospi and Taiex are both down modestly, while offshore investors have sold -$220.4mn of local Korean shares.
- In SEA, Malaysian, Indonesian and Philippine stock indices are lower, with only Thai stocks managing to gravitate higher.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
MNI: US HOUSE FINANCIAL SERVICES ANNOUNCES HEARING ON SVB, SIG
- MNI: US HOUSE FINANCIAL SERVICES ANNOUNCES HEARING ON SVB, SIG
- FDIC CHAIR GRUENBERG, FED VICE CHAIR BARR TO TESTIFY MARCH 29
- HOUSE FINANCIAL SERVS SAYS TO BE FIRST OF MULTIPLE HEARINGS
USDCAD TECHS: Pullback Considered Corrective
- RES 4: 1.4000 Psychological round number
- RES 3: 1.3977 High Oct 13
- RES 2: 1.3898 High Oct 14
- RES 1: 1.3814/3862 High Mar 15 / 10 and the bull trigger
- PRICE: 1.3733 @ 16:44 GMT Mar 17
- SUP 1: 1.3652 Low Mar 14
- SUP 2: 1.3562 50-day EMA
- SUP 3: 1.3515 Low Feb 22
- SUP 4: 1.3442 Low Feb 20 / 21
The recent move lower in USDCAD appears to be a correction and this is allowing a recent overbought condition to unwind. Recent gains strengthened a bullish theme. Price has cleared the Dec 16 high of 1.3705 and traded above 1.3800. Scope is seen for gains towards 1.3977, the Oct 13 high. Initial support is seen at 1.3652, Tuesday’s low. Key short-term resistance and the bull trigger is at 1.3862, the Mar 10 high.
AUDUSD TECHS: Corrective Cycle
- RES 4: 0.6865 High Feb 22
- RES 3: 0.6824 High Feb 24
- RES 2: 0.6784/87 High Mar 1 and a key resistance / 50-day EMA
- RES 1: 0.6748 High Mar 7
- PRICE: 0.6696 @ 16:43 GMT Mar 17
- SUP 1: 0.6590/47 Low Mar 15 / 61.8% of the Oct - Feb bull cycle
- SUP 2: 0.6500 Round number support
- SUP 3: 0.6425 2.00 projection of the Feb 2 - 6 - 14 price swing
- SUP 4: 0.6403 76.4% retracement of the Oct - Feb bull cycle
The AUDUSD trend condition remains bearish despite the recent recovery - a shallow correction. The Mar 7 sell-off reinforced a bearish theme. The break lower maintains the price sequence of lower lows and lower highs and price has breached key support at 0.6629, the Dec 20 low. This signals potential for weakness towards 0.6547, a Fibonacci retracement. Initial firm resistance has been defined at 0.6784, the Mar 1 high.
