By Chris Becker
Risk sentiment remained sour overnight as the deadline for new tariffs on Chinese goods to the US is rapidly approaching. European shares fell sharply while US stocks slipped with a little bit of hope as bond yields didn’t fall as fast as expected. The USD remains a little weaker against the majors, but Yen is still firming as a safe haven while the Aussie dollar lifted but remains under 70 cents.
Looking at Asian markets from yesterday first, where the Shanghai Composite fell 1.5% to close at 2850 points, now in correction territory and back to the February lows. In Hong Kong, the Hang Seng Index fell even further, down 2.4% to 28311 points, with price slumping right down to the weekly support near the 28000 point level. The previous daily candle suggested a possible bottom – but as I said that was hopeful as this market corrects very sharply. Momentum is way oversold so normally we should see a reversion, but this is now in the hands of the trade talks:
