by Chris Becker
A tumultuous week on risk markets capped by the monthly non-farm payroll (NFP) on Friday night that will set the course for the next month! But it wasn’t just the monthly unemployment figures that markets were watching as over the weekend, we’ve had confirmation from the Saudis that they care more about their market share than they do prices – which is a headwind for the continued bear market rally in the liquid gold. Chinese exports were also buoyed which hopefully might help Chinese shares that were slammed on Friday. The NFP print however remains the big cheese, which saw the USD bid across the board against the majors, but not convincingly, as the internals showing easing growth in jobs will likely equate to easing pace in the Fed “normalising” rates.
I’ve included weekly charts in todays report to look a bit further out and examine longer term trends.
Recapping Asia where the Shanghai Composite was slammed on Friday, falling nearly 3% and completely rejecting overhead resistance at 3000 points and almost taking out temporary support: