Morning all.. Wall St sold off with the S&P closing down 1.5% after the honeymoon was cut short from the Fed rate hike and things got worse in Asia. The rising dollar is doing some damage and commodities got hit hard taking stocks lower. Even the BoJ adding to ETF buying couldn’t stop the Nikkei closing down nearly 2%. USDJPY after a spike higher to 123.56 fell hard to 121.76. The Bank of Japan surprised markets by increasing its purchases of exchange-traded funds (ETFs) by 300 billion yen annually, in addition to its current plan to increase the monetary base by 80 trillion yen a year. After the decision, the Nikkei erased early losses but turned sharply lower. This is not good news for the BoJ who have found that adding to QE is no guarantee of success..China’s economy was plagued by pervasive weakness in the fourth quarter, results from a private survey of Chinese firms showed, raising questions about the veracity of stronger than expected official activity data released this month. An assessment of conditions in China, the beige book, the quarterly survey of over 2100 businesses by China Beige Book International (CBB) showed national sales revenue, volumes, output, prices, profits, hiring, borrowing and capital expenditure were all weaker on-quarter, creating more uncertainties for China’s economy. Stocks falling with a higher dollar and falling commodities is weighing heavily on emerging markets as well.. There is a real risk off theme building. There is concern that the Fed hike and resulting higher dollar is doing a lot of damage elsewhere. USDJPY the main mover but there are implications for commodity currencies as well which have so far remain solid. Traders will be watching EU stocks and commodities closely. This morning we have French PPI, Norway unemployment and ECB current account.. Good luck..