Macro Morning

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By Chris Becker

A bath of blood on overnight markets with US stocks falling nearly 4% and European bourses losing at least 2% with oil and commodity prices also cratering. It’s all about the US bond market with the 2% yield now hitting a 10 year high as interest rate rises crunch a not quite so robust US corporate sector. The USD fell in response, although the Aussie came back from its own short covering rally, Euro and Yen were safe haven bids throughout the session.

Recapping Asia’s session yesterday where the Shanghai Composite finished a few points higher, up 0.1% to 2724 points. Looking at the daily chart, where Monday’s action took it back to previous weekly support, this pause needs to hold or it’s all over:

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