Macro Morning

Advertisement

By Chris Becker

Unease about the direction and magnitude of the Fed’s interest rate rise agenda turned into loosely held confidence overnight as some lower tier data from the US seemed to show not all the ducks are lining up in a row for the Fed. In the perverse world that is markets, US stocks rallied on the weaker than expected manufacturing PMI although they sold off most of their gains towards the close. European stocks did well and oil rebounded on speculation Iran may consider a production freeze, while the USD lifted against Euro and the Aussie as Pound Sterling continues its return to favour.

The Shanghai Composite managed to eke out a scratch session yesterday,closing at 3089 and still holding above the previous stalled support level at 3000 points. I’m still targeting a run up to 3400 points here on this breakout, but it needs to clear the previous daily high. I’m sensing an explosive move higher soon on the unwinding of this tension:

ssec_ix_price_daily_and_commodity_channel_index___daily___40_periods.24feb16_to_30aug16
Advertisement
Advertisement

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe