Macro Morning

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By Chris Becker 

Two major factors are keeping markets enthralled at the moment, resulting in scratch sessions for stocks and the usual normal oscillation on currencies. The outcome of the Trump/Xi trade talks this weekend and the too-dovish expectations that the Fed will cut aggressively next month, with Treasuries rising again as interest rate cuts probabilities continue to fall. Gold and Bitcoin are retracing from their blowoff highs as the USD strengthens slightly.

Looking at yesterday’s action in Asia first, where Chinese markets were mixed, as the Shanghai Composite slipped again, falling 0.2% to 2976 points, still unable to get back above the 3000 point barrier. In Hong Kong the Hang Seng Index has bounced the other way, up 0.2% to 28221 points. The daily chart is showing signs of a post dip stabilisation with support at the 28000 point level holding:

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