By Chris Becker
Last night saw a mild reversal in sentiment over the ongoing emerging markets risks, with US stocks ending slightly higher as USD continued its appreciation against most of the undollars. German 2Q GDP came in a little lower than expected, with the ZEW sentiment survey also remaining negative, but slightly improving as overall EZ GDP printed solidly.
Recapping Asia’s session yesterday with Chinese stocks first, as the Shanghai Composite eventually closed only 0.2% lower at 2780 points, still rejecting previous support now firming resistance at 2800 points. Momentum remains negative here and given the ongoing trade war and the trajectory of the 200 day moving average (light blue line) there is still no reason yet to be anything but an observer:
