Macro Morning (the King)

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By Chris Becker

The appetite for risk continues to abate in the northern hemisphere summer, as traders prefer a day at the beach instead of at their screens. European and US stocks were flat and mildly off, the latter due mainly to Apple’s lacklustre performance as earnings season rolls up. No big moves in bonds either as US factory orders came in on expectation, as the King USD continued to gain strength against all the majors except for the woefully mismanaged Pacific Peso.

Recapping Asia’s session, further official intervention in the Shanghai Composite saw it make it biggest gain for nearly a month, up nearly 4% to 3756 points, continuing to oscillate around the 200 day moving average. It’s still well below the critical 4000 point resistance level as selling pressure mounts with a lack of real buying support or positive momentum. Everyone continues to watch the long term support at 3500 points:

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