By Chris Becker
Trade war concerns are still weighing down on risk sentiment across global markets with Wall Street falling over 1% to start the trading week on a bad note, as everyone watches dead cat bounces develop on their charts. The unrest in Hong Kong plus the chance of new snap elections in Italy and the ongoing clusterf#ck that is Brexit isn’t helping either with safe haven bids across the board – Yen, gold and Treasuries as usual with the latter 10 year yield dropping back to 1.6% as markets price in even more Fed cuts.
Looking at the action on Asian markets yesterday, where the Shanghai Composite finally found some momentum, jumping over 1.4% to 2815 points while the Hang Seng Index was just hanging on to a scratch session before selling off going into the close to be down 0.4% to 25824 points. This keeps it just above the January lows at 25000 points but even a cursory glance at the daily chart shows it remains in trouble with very poor momentum – flip the chart and you’d be super bullish:
