By Chris Becker
Yet another extraordinary week in international relations as Trump parades across the globe upsetting friends, trashing major trade partners and embracing foes and dictators. Combined with more noise over the trajectory of the US economy, particularly interest rates, risk markets have not taken it in stride, as volatility increases across the board.
Looking at Chinese stocks first, the Shanghai Composite remains in a bear market phase, with a volatile week – finishing where it started at just above 2800 points. While the price decline has obviously decelerated here, and momentum remains quite oversold (below -200 on CCI 40 weekly) there is a potential to bottom out here at the 2016 lows. The last two week candle do suggest price action maybe ready to bounce in the short term:
