FTSE -26 points at 7080
DAX -43 points at 1142
CAC -21 points at 4827
Euro Stoxx -15 points at 3263
Trading volumes rose in Asia, as capital flew out of the equity markets. Japanese stocks fell the most in more than a month, as Toshiba Corp. (T:6502) (-16.98%) recorded the biggest intra-day drop on record (up to -26%) amid S&P and Moody’s cut the company’s credit rating on the back of an announcement that the company could write down billions of dollars on an acquisition made by its US unit Westinghouse Electric, which could cause important liquidity concerns at the heart of the company in the short-term.
Nikkei (-1.32%) and TOPIX (-1.20%) led losses as the yen strengthened 0.53% against the US dollar and 0.08% against the euro. The USD/JPY stepped into the short-term bearish consolidation zone, after slipping below 116.55 (major 38.2% retracement on Dec 8th to Dec 15th rise). The bearish reversal could encourage a further retreat toward 105.90 (Fibonacci 50% level).
Chinese stocks were mixed: Hang Seng (+0.00%) and Shanghai’s Composite (+0.03%) were mostly flat approaching the daily closing bell.
The US dollar depreciated against all of the G10 and the majority of the emerging market currencies, except the Indonesian rupiah. The unexpected 2.5% drop in pending home sales in the US triggered a sell-off in both the US dollar and the US stocks. S&P 500 closed the day 0.84% lower, Dow Jones and Nasdaq wrote-off 0.56% and 0.89% respectively.
The EUR/USD advanced to 1.0465. Resistance remains solid at 1.0475 / 1.0500 (minor 23.6% retracement following European Central Bank and Federal Reserve’s December meetings / optionality). The EUR/GBP is better bid, with rising possibility of reaching 0.8553 (50-day moving average). Yet, the EUR/USD should drill through the 1.0500 offers to allow a further rise across the EUR-crosses. The EUR/JPY is soft on the back of a stronger yen demand.
Gold added 0.58% and tested the $1150 offers for the second time this week. Silver gained 0.81%.
Demand in oil and commodities retreated in Asia. WTI futures bounced lower after hitting $54.57 in New York, the highest level since Jul'15.
FTSE futures (-0.31%) slid the most in Asia. The DAX (-0.03%) and CAC 40 (-0.02%) were flat. Eurostoxx eased 0.06%.
European markets are set for a softer open. FTSE is called 26 points lower at 7080 pence at the open.