Macro Morning

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By Chris Becker 

President Trump’s huuge announcement of more tariffs (with extra added deadlines!) on China has sent currency markets gapping down here in Asia on the early open, with S&P mini futures gapping 1% lower which will lead to commensurate falls on equity markets when they open this morning. Except Japan, which will be closed one more day for its Golden Week celebrations. Combined with the strong NFP print on Friday night, another catalyst to watch are oil prices which will come under pressure with Trump bashing Iran with more sanctions, so it looks like an interesting start to the trading week!

Looking first at the Asian session on Friday where the Hong Kong based Hang Seng Index finished the week on a good note, rising 0.5% to breach 30000 points, closing at 30081. After hovering around local support at the 29000 point level this was a solid breakout but it remains to be seen if it breach the previous resistance level from all of April at 30300:

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