Macro Morning

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By Chris Becker

A modest night for US stocks with European bourses taking the most risk as the recent rise in Euro and Pound Sterling moderated. The Aussie dollar remains on a tear, up to the mid 72’s versus USD and strengthening on all the crosses. US Treasury 10 year yields remain above 3% with 2 year yields catching up and now at their highest since the GFC. Commodity prices spiked with WTI oil up 2% as other base metals were relatively unchanged.

Recapping Asia’s session yesterday with Chinese stocks first, where the Shanghai Composite followed through on its bounceback, closing 1.2% higher at 2734 points, getting through short term resistance at the 2700 point level. Although momentum remains negative this could bounce as high as 2800 points as part of a multi stage breakdown, I’m keeping an eye on the USDCNH correlation here:

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