Macro Morning

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By Chris Becker

The risk trade is transitioning back to the safety of bonds as the USD softened overnight on comments from Fed members that the tightening regime will probably include at least 2 or 3 hikes this calendar year. US stocks retreated, while gold and other undollar currencies were stable or rose slightly to start the week on shaky ground.

Looking at Asia’s session yesterday, the Shanghai Composite had a wobbly start to the week but eventually closed higher for the day, up 0.4% to 3250 points. The former high at 3300 points remains the target here but these fits and spurts are not confidence inspiring:

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