Macro Morning

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By Chris Becker

Poor results from retailers and continuing doubts on the Fed’s rate rise agenda saw US stocks drop slightly overnight as the BOE also warned about consumer spending, sending Pound Sterling down against the majors. Is the global reflation trade finally tipping over? Commodities say no, with oil copper and gold rebounding again but iron ore remains a drag for local shares when they reopen today.

Yesterday in China the Shanghai Composite gapped down after the long lunch break after being steady early in the session, before being filled mysteriously going into the close to be up 0.3% to be at 3061 points. The once critical support level at 3100 may turn into strong resistance if this keeps up as the bear market rally evaportates:

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