By Chris Becker
While the US ISM manufacturing print came in with a solid reading, a lacklustre car sales report and continued concern over the Trumps administration to actually – well administer anything – drove US stocks down overnight. Coupled with the forthcoming FOMC minutes, the Trump-Xi Chimerica meeting and Friday’s non-farm payrolls report, this lack of confidence is filtering through to other risk markets as 10 year Treasury yields fell again on the safe haven bid alongside Yen.
Looking at how Asia started the week yesterday where the Shanghai Composite was closed for a holiday. The daily chart below shows a lack of conviction and the upside target at 3300 points remains a low risk/reward proposition for now:
