Macro Morning

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By Chris Becker 

A slew of concerns wracked overnight markets with the return of US traders not helping, the downgraded IMF forecasts plus mixed news and reports about the US/Chinese trade delegation leading to selloffs as overbought stocks pulled back. Poor sentiment on the closely watched German ZEW survey plus a slump in existing home sales in the US – compounded by no further action on the Trump shutdown – didn’t help either, with the USD mixed against the major currency pairs, with gold recovering slightly.

Looking at the Asian session yesterday first, where the Hang Seng Index was off 0.7% to 27005 points. The daily chart shows how important it is for the market to stay above the previous falsebreak high above 27100 points so this one day reversal is not helpful. With price still above the weekly downtrend (black line slanting down to the right below), the next level to clear is above the 27300 point level:

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