Macro Morning

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By Chris Becker

Another bounceback overnight but will it stick as stock markets remain in shock with too may series of volatile sessions starting to exhaust traders (me included). Tech stocks led the way with the NASDAQ lifting nearly 3%, while Treasury yields spiked again while currencies were relatively calm as the ECB stayed the course and didn’t rattle any cages at last nights meeting. Economic data from the US looked good on the headline, but internally is weakening with GDP growth predictions taking a haircut.

Recapping Asia’s session yesterday where the Shanghai Composite was actually one of the better performers, down more than 1% going into the close, but then recovered to finish with a scratch session just above key support at the 2600 level. The daily chart shows how clearly that in the short term it needs to get back and remain above 2600:

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