Risk-off in Asia? Nikkei 225, SP500 under mild pressure

FXStreet (Bali) – Asset classes that best assess risk-averse market conditions during Asia, that is, SP500 futures (-0.1%), the Nikkei 225 (-0.23%), AUD/JPY (-0.20%), are all under pressure in the early stages of Asia, while Gold ticks higher at 1,145.00.

Chinese market is back into action

Despite a V-shape type of recovery in the SP500 on Wednesday, ending up by 0.80%, and with the risk environment still in a neutral to positive territory as market prices out Fed rate hikes this year, the return of the Chinese market today, after the golden week, might be acting as a psychological factor, leading to more cautious behaviors by the smart money.

Yen implied volatility keeps edging lower

Looking for possible clues in the CME options market, hardly any clue can be found, with implied volatility in the USD/JPY November contract dropping from 11.22 by end of trading Tuesday to 10.18 by end of last NY close, suggesting that limited choppy moves should still be the norm. Interestingly, the implied volatility in the AUD/USD Nov contrat has now gone up to 11.75 from 11.44, which leads to believe the pair will remain quite active today.

Asset classes that best assess risk-averse market conditions during Asia, that is, SP500 futures (-0.1%), the Nikkei 225 (-0.23%), AUD/JPY (-0.20%), are all under pressure in the early stages of Asia, while Gold ticks higher at 1,145.00.

(Market News Provided by FXstreet)