Macro Morning

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By Chris Becker 

Its all swings and roundabouts with the Chinese overnight indicating they won’t retailiate against Trump’s latest tariffs (and they’ll overlook his lying about phone calls too!), which sent risk markets sharply higher, dragging the USD along as well. Treasury yields dropped, with the 10 year losing 10 points as money went back into stocks, as gold also pulled back to almost a new weekly low.

Looking at the action on Asian markets yesterday, where the Shanghai Composite was down a handful of points again, remaining below 2900 points while the Hang Seng Index was continuing its mild retreat before a late rally at the close saw it lift 0.3% to 25703 points. Price is slowly getting out from under pressure by lifting above the low moving average on the daily chart, and for now has stave off a return to the terminal low just below 25000 points. This could be the start of a swing rally higher, with the first target to reach the previous bounce high at 26200:

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