Macro Morning

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By Chris Becker 

Risk markets remained unconvinced of any real development in the US/China trade war as Trump gets called out on his bald-faced lies following the G7 meeting. US stocks retreated slightly while the USD is little changed against the majors, as Treasuries firmed across the curve. The latest German GDP was left unrevised in its final reading, meaning the central European powerhouse is teetering on recession, while US consumer confidence surprised to the upside as the Case/Shiller house price index continued to lift at a steady pace.

Looking at the action on Asian markets yesterday, Chinese stocks split direction with the Shanghai Composite taking back its previous losses to close 1.3% higher and back above 2900 points while the Hang Seng Index retreated throughout the session before coming up with a scratch result to finish at 25664 points. Price action remains under a lot of pressure here, still well below the low moving average on the daily chart, and looks set to return to the terminal low just below 25000 points. 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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