By Chris Becker
US/China trade tensions are spiking again, this time on the hullabaloo around Huawei with tech stocks sinking overnight, dragging down industrials and taking away most of any remaining risk confidence. Interest rate and currency markets were more benign but the USD remains firm across all undollars, with the Australian dollar rolling over post its election highs.
Yesterday saw Asian stock markets start the rollover process with the Shanghai Composite starting the week poorly, staying below 2900 points and down nearly 1% before closing off 0.4% to 2870 points. In Hong Kong, the Hang Seng Index hasn’t done much better, down 0.6% or so to 27787 points as the rollover to a new daily low seems complete for this dead cat bounce. Momentum is not yet heavily oversold and does support a move lower from here:
