Despite the Chinese continued intervention to support the offshore CNY exchange rate, the Asian major stocks indexes came under increasing downside pressure today, after the risk-off sentiment could contain the markets again during the US session sending S&P 500 to its lowest level since Sep. 30 losing 2.5% yesterday closing at 1890.28.

The demand for safe haven sent the gold up to be trading near $1095, while the US treasuries prices were rising again with lower yields.

In the same time, The Japanese yen could be boosted across the broad by unwinding of the carry trades wave, as this low cost financing currency usually gains benefits during the dovish market sentiment which could push Nikkei 225 down to lose more than 650 points during today Asian session.

The Aussie which is sensitive to the Chinese developments has extended its falling with shanghai composite trading well below 3000 psychological level today, as the Australian economy depends mainly on exporting the raw materials especially to China which is looking now for soft landing of its economic expansion pace, after overheating years.

While Brent oil was coming under pressure to be traded below 30$ for the first time since April 2004 on spreading rumors about the probability of applying the Iranian nuclear deal by next Monday which can add daily 500k barrels initially, before increasing by 1m barrels within 6 months, as the Iranian national oil company has said.

Have a good day

Walid Salah El din
Senior Market Analyst