Macro Morning (Trading Week)

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By Chris Becker 

Another very interesting week on global markets as the potential for new trade deals is overshadowed by Trump’s insistence on smashing the Chinese with more tariffs. Brexit fallout is pushing Pound Sterling higher, lifting the Euro with it and taking some heat off the rise in USD, although the Aussie dollar is not yet getting any susbtantive assistance here. Stock markets are bifurcating with the US bourses lifting higher while European markets struggle at key support levels, Asian markets are also in decline – although the ASX200 continues its own miracle!

Looking at Chinese stocks first, the Shanghai Composite remains well below weekly resistance at 2800 points with only a small sniff above daily resistance at the 2700 point level. The longer term support line at just above 2600 points is the key level to watch as weekly price is very slowly decelerating towards it – if it breaks, another big downleg in this bear market:

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