FAST FIVE: Futures Spooked After China Says "Very Worried" About Bubbles In US, European Markets
“China's monetary policy has not been as easy as the US and Europe,” said Steven Leung, executive director at Uob Kay Hian (Hong Kong) Ltd.
Market Snapshot S&P 500 futures down 0.5% to 3,878.50 MXAP down 0.3% to 209.67 MXAPJ down 0.2% to 704.86 Nikkei down 0.9% to 29,408.17 Topix down 0.4% to 1,894.85 Hang Seng Index down 1.2% to 29,095.86 Shanghai Composite down 1.2% to 3,508.59 Sensex up 0.5% to 50,113.92 Australia S&P/ASX 200 down 0.4% to 6,762.27 Kospi up 1.0% to 3,043.87 Brent futures down 0.8% to $63.21/bbl Gold spot down 0.2% to $1,721.18 US Dollar Index up 0.28% to 91.30 Stoxx Europe 600 little changed at 412.64 Euro down 0.3% to $1.2008 Brent futures 0.8% to $63.21/bbl Top Overnight News from Bloomberg China's top banking regulator said he's “very worried” about risks emerging from bubbles in global financial markets and the nation's property sector, sparking fresh concerns about further tightening in the world's second-biggest economy For US politicians, China's potential to dominate sensitive cutting- edge technologies poses one of the biggest geopolitical threats of the next few decades.
For the record, preliminary Eurozone inflation prints were broadly in line with consensus, and from a chart perspective Eur/Usd could retreat further on a close beneath the 100 DMA (1.2033), while decent option expiry interest between 1.2045-65 (1.5 bn) may keep rebounds in check.
In commodities, WTI and Brent front-month futures have been somewhat choppy throughout the morning briefly moving into positive territory but have since retraced the marginal upside.
I can't help but think these big events will be a regular feature of this year as the forces in both direction continue to be huge and prone to sparking volatility.