By Chris Becker
A reduction in US tariffs and timeline was behind a rebound on Wall Street and the USD overnight with concerns over the growing trade war with China overshadowing a stronger than expected CPI print for July. The German ZEW Survey slumped but was ignored by European equities as the Euro fell on USD strength following the CPI print, with commodity prices leaping across the board as oil gained over 4% and gold and base metals rose.
Looking at the action on Asian markets yesterday, where the Shanghai Composite has given up after its initial good start to the week, retracing half of those gains to fall 0.6% to 2796 points while the Hang Seng Index is no longer hanging on but selling in earnest as domestic risks outweigh all else, down over 2% to 25281 points. This puts it below the January lows and matches the previous daily lows from last week, with the daily chart spelling a lot of trouble ahead unless momentum can pick up soon:
