Chinese stocks are down on the day
Both the CSI 300 and the Shanghai Composite indices are down by over 1% and trading close to the lows for the day in the final stages of trading today, as we see a softer risk mood all around in markets going into European trading.
There is talk of state funds selling stocks and that is proving to be a drag for Chinese equities but also perhaps some profit-taking activity ahead of the weekend.
Barring any late surge, this is likely to see Chinese equities snap an eight-day win streak in which the CSI 300 gained by almost 18% during that time span.
Elsewhere, the Hang Seng is also weighed lower by 2% amid the softer risk mood and further news that Hong Kong is tightening restrictions amid a resurgence in virus cases.
The latest being that all schools will be closed once again to curb the outbreak.
Alongside weaker US futures (S&P 500 futures down by 0.6%), that is weighing on risk sentiment and is keeping the dollar and yen bid going into the session ahead.
AUD/USD is now down by 0.5% to 0.6928 at session lows, testing a break under its 200-hour moving average as sellers look to seize near-term control.
