By Chris Becker
Another relatively volatile week in risk markets as the bull market in US stocks continues amid growing political concern surrounding the Trump administration and the ongoing trade war. European and emerging markets remain cautious however amid a slight reversal in USD strength while locally the new Aussie government is increasing sovereign risk and hurting the Aussie dollar.
Looking at Chinese stocks first, the Shanghai Composite bounced off its recent weekly low, getting back above what had been firm support at the 2700 point level but not above the low moving average. This is telling and while momentum remains oversold, there’s no reason to be bullish here yet for a swing cycle – although watch the Yuan fix:
