Macro Morning

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By Chris Becker 

Friday night saw a continuation of some positive sentiment across risk markets, although the long weekend in the US meant positions on Wall Street were tapered back, not helped by the latest consumer sentiment figures which are receding. The ECB contineus to send out mixed messages, with some calling for more easing messages, as retail sales in Germany fell again, stoking fears – along with the upcoming hard Brexit – of a recession building across the continent. The USD was much stronger against Euro as a result, with Pound Sterling also dragged down

Looking at the action on Asian markets Friday, where Chinese stocks looked to be moving slightly higher but finished with minor losses, the Shanghai Composite down 0.1% to remain below the 2900 point level while the Hang Seng Index finished with a scratch session at 25724 points. Price remains under pressure here below the high moving average on the daily chart, and is still anchored nearer the terminal low just below 25000 points. This was looking to be the start of a swing rally higher, but there’s not enough buying support:

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