Macro Morning

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By Chris Becker 

Tech stocks lead the way on Wall Street overnight as solid earnings overshadowed the ECB rate meeting which ended up a fizz with no substantive change. Commodity prices rose with gold particularly getting out of its funk, with oil prices continuing to move higher after breaking out post the latest inventory report. Bond yields however were largely unchanged while US Vice President Pence’s speech about China failed to raise the hackles, as beleagured Brexit buffoon Boris admitted defeat and called a snap election in the UK.

Looking at the action on Asian markets yesterday, where the Shanghai Composite is still struggling to get back on track, closing down a handful of points to 2939 to remain well below 3000 points as the Hang Seng Index launched higher, up 0.6% to take back half of its previous losses, closing at 26727 points but still unable to crack resistance overhead at the 27000 point level. Again, short term possibilities have not yet outweighed the longer term depressed setup:

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