Macro Morning (thar oil blows)

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 by Chris Becker

A double whammy for commodity markets and the economies tied thereto with OPEC effectively abandoning its output targets, pushing off any resolution until June next year while iron ore crashes to a six year low. Its almost as if we’re in some kind of bear market in commodities??! US stocks slipped and closed in the red last night, taking futures with them as German industrial production printed dead flat with no growth in the Euro powerhouse. Bond markets rallied significantly overnight, although Australian issues are under pressure as the number of foreigners buying the engorging federal debt falls to new lows. A sign of things to come?

Starting with Asia’s session and where the Shanghai Composite managed to put on some meagre points but is going nowhere fast, still below 3600 points, trying for another attempted breakout. Support at 3400 points is fairly strong here, as it formed the previous resistance level through October. The commodities rout should see this edifice pushed over soon:

ssec_ix_price_daily_and_commodity_channel_index___daily___40_periods.03jun15_to_12dec15

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