Macro Morning

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By Chris Becker 

The bounce is over! An ounce of disappointment is bringing a pound of pain to stock markets overnight, with both sides of the Atlantic closing at their session lows as Trump states he’s not ready to do a deal with the Chinese over their long running trade dispute. The USD was weak across the board, although both Kiwi and Aussie fell on lower commodity prices, with gold coming back slightly from its recent consolidation.

Looking at the action on Asian markets yesterday, where Chinese stocks switched sentiment to be the worst performing, with the Shanghai Composite falling 0.2% to 2880 points while the Hang Seng Index eventually fell about the same to close at 26231 points. This was all despite the interest rate relief promised by the Chinese, so sentiment remains weak here at best. With price unable to get above the previous bounce point, this dead cat is not yet alive:

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