Market Summary for 21/8/2015
Aug 24, 2015
Last Friday saw a sustained sell-off in global markets, with key technical levels broken across the board in various asset classes. Eur/usd and usd/jpy rose and fell over 100 pips respectively as carry trades were further unwound in the risk-off environment. S&P 500 closed down 3% at its day low, just barely off the next key support level. Commodities also remain under pressure, with oil dipping below $40 a barrel although gold held onto its gains just below $1160 as investors fled to gold as a safe haven in the market sell-off. Aud was pressured by weakness in China and commodities, also closing lower around the 0.73 handle.
Key risk events today: Japan leading index
With the absence of further monetary easing over the weekend to prop up markets and shore up confidence, we should see a continued sell-off in global markets today. Risk off trades would be favoured, selling rallies in risk.