Macro Morning

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By Chris Becker

The equity correction ramped up significantly overnight with big outsize falls on Wall Street, the NASDAQ off by more than 4% (although Tesla did well on its profitable quarter) while the broader S&P500 lost over 3%. This does not bode well for Asian stocks today with runs to safe havens like Yen and gold likely to accelerate on the open this morning. Is this all about the upcoming US mid-term elections or just another manic Red October?

Recapping Asia’s session yesterday where the Shanghai Composite did well at the start of the session but struggled after the long lunch break, closing 0.3% higher to just above key support at the 2600 level. The daily chart still shows classic signs of a bear market, with my target remaining at the 2300 terminal support area. An inability in the short term to get back above 2600 will be telling here today in response to overnight falls:

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