Macro Morning

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By Chris Becker

US stocks fell overnight on the widening political imbroglio in the US with a race to bonds sending Treasury yields to a new low while other safe havens also benefited. European stocks had been doing well before the US open and while there was some disappointing economic prints, with the non-ISM manufacturing printing lower than expected, but still positive, the BOE surprised with lower economic and inflation forecasts, sending Pound Sterling lower, but failing to bring Euro with it.

Yesterday in mainland China the Shanghai Composite finished down 0.4% to 3272 points as it again fails to breach the next obvious resistance at the 3300 point level. While the uptrend remains intact it may not have the momentum here to finally push through, setting up for a very interesting retracement:

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