Macro Morning

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By Chris Becker 

Friday night saw the return of the short sellers and the end of what looked like a sustainable bounceback in equity markets. Wall Street closed sharply lower as the prospect of more fracas from the US-China trade war emerged, as the PBOC continues to wipe out the Yuan while Trump targets the Fed to cut rates ASAP. US Treasury yields rose slightly while commodity markets were mixed with base metals falling while oil prices came back somewhat as the USD remained mixed against the majors.

Looking at the action on Asian markets on Friday, where the Shanghai Composite was unable to gain any momentum, falling 0.7% to finish below the 2800 point barrier at 2777. The Hang Seng Index was also off the same magnitude to 25939 points as risk focuses on the domestic problems instead of any external change in risk sentiment. This keeps it above the January lows at 25000 points but it remains in trouble with very poor momentum:

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