Macro Morning (dead cat buried)

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By Chris Becker

A relatively smooth session on equity markets after the torrid previous session due to the Volkswagen fallout and on the back of the removal of the China put, as Xi Jinping negates all hope of stimulus in a series of speeches during his visit to the United States. Oil fell substantially as the other commodity markets licked their wounds as bonds marked time. SPI Futures are pointing to a steady open this morning on the ASX200 after the blood of bath yesterday.

Recapping Asia’s session, where the Caixin manufacturing PMI wiped out any remaining confidence and sent equity markets down 2% or more. Even the heavily intervened Shanghai Composite slumped and finished down 2.2% at 3119 points, still just above terminal support at 3000 points. The daily chart still points to a downtrend here with no resolution in sight as we bounce along:

ssec_ix_price_daily_and_commodity_channel_index___daily___40_periods.25mar15_to_30sep15

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