Macro Morning (Trading Week)

Advertisement

By Chris Becker 

The US non-farm payroll/unemployment print came and went on Friday night, setting up the timbre of the next months action on risk markets. For stocks, it should be positive, given the reading was the lowest in nearly 20 years, as US stocks launched higher in response, pulling up the stalled European bourses. We should see a similar reflection today in Asia. Alongside, oil and other commodity markets are pushing higher on the risk-on train while in currency land its all about the continued rise of the USD, mainly at the expense of the Euro.

Looking at Chinese stocks first, the Shanghai Composite is still below the 200 day moving average but any attempt at pushing the market back down to key terminal support level at 3000 points has been thwarted so far with a positive week closing near the 3100 point area. Support is building here but its a high risk choice to be long here:

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe