Macro Morning

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By Chris Becker

After a solid session of selling in Asia yesterday, European stock markets lost all their confidence later in the session as PM Theresa May lost her bolt on the Brexit vote, sending Pound Sterling down to a new low for the year. US stocks surprisingly came back strongly in the second half of the session following the European rout and actually finished in the green, but this was overshadowed by heavy buying of Treasuries, sending 10 year yields to their lowest in months. With oil and commodity prices also falling overnight amid a much stronger USD, it paints a mixed picture for trading in Asia today.

Recapping Asia’s session yesterday where the Shanghai Composite was actually one of the better performers, down only 0.8% to 2584 points, but no longer able to hang on above the previous support level at 2600 points. The daily chart is moving sideways at best here, unable to sustain itself above 2600 points for any length of time, so again it looks unlikely at having a go at breaking through resistance at the 2700 point level:

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