Macro Morning

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By Chris Becker 

The dead cat bounce had some kittens overnight with the US and China looking to return to the negotiating table before the trade war re-ignites again. Stocks recovered mildly on Wall Street while the USD came back from its slump, as Treasury yields nudged higher again. In economic news, the slump in German business confidence continued, while the US durable goods orders were up in July, but mostly waved away due to volatiles as the core bunch of orders fell again. Commodity prices have yet to recover, with oil off by 1% or so, while gold came back after hitting a six year high.

Looking at the action on Asian markets yesterday, where Chinese stocks lead the way down as the Shanghai Composite closed 1.2% lower to 2863 points while the Hang Seng Index is off almost 2% to 25680 points. Price gapped down well below the low moving average on the daily chart, and was looking set to return to the terminal low just below 25000 points, but futures are indicating another bounce back here. Still too much for any but the swing traders to handle – the upside breakout level is still well above 21600 before re-engaging longs:

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