By Chris Becker
While the winter flu season hits here (apologies for yesterdays Macro Afternoon), the sun is sweltering in Europe and North America, taking the shine off the reflation trade with stock markets slipping on both sides of the Atlantic overnight. Corporate earnings in the US, the IMF’s backdown on a post-Brexit growth pickup were matched by a surprising pickup in US home sales which sent the USD higher. This sent commodities lower with crude down on both markers alongside copper, but gold is holding steady, a good sign for gold bugs.
Recapping Asia first where the Shanghai Composite slipping again, down 0.25% to close at 3036 points, still unable to clear the 200 day moving average. Watch the Yuan fix for continued tradeable ideas here but I think a reversal is on the cards soon on the lack of momentum:
