Macro Morning

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By Chris Becker

The malaise in Asian risk markets did not infect others overnight with bourses on both sides of the Atlantic closing higher overnight in the absence of bad news or economic catalysts. On currency markets, developments in Brexit negotiations saw Pound Sterling spike to a new two week high against USD while the other majors drifted around aimlessly. Commodity markets were also relatively quiet with a rally in Brent overshadowed by a drop in WTI while gold, copper and other base metals were steady on the LME.

Recapping Asia’s session yesterday with Chinese stocks first, where the Shanghai Composite started the week poorly, closing 1.2% lower to 2669 points as it breaks below what was support at the 2700 point level. Momentum remains negative as Chinese shares follow the Yuan down as caution reigns with Trump’s trade war looming. Terminal support at just above 2600 points – the previous bear market low – must be watched carefully:

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