Macro Morning

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By Chris Becker

We’re setting up some dangerous conditions on stock markets as they rally in relief that Brexit may be over due to the combined efforts of monetary authorities and policy makers. The reality is it has only just started and overnight saw the revelation that pro-leave campaigner Boris Johnson would not “take the reins” post David Cameron’s exit to handle the hot turd that is the UK if Article 50 is enacted. Others will step in to polish it, but this sent Pound down again, while stock markets kept playing the Lego song as the FTSE lifted over 2%, dragging the European bourses and eventually the S&P500 higher too. Commodities were mixed, as gold remains the Minsky Metal go-to and bonds were bid up to more extreme levels, heralding the real safe haven, knowing that QE4 et al. is coming.

Recapping Asia first where the Shanghai Composite is still showing signs of getting bullish and ready to breakout, although it turned in a scratch session yesterday remaining at 2930 points at the top end of its tight band of resistance and support. Breaking resistance at 3000 points is the key level to watch:

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