Macro Morning

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By Chris Becker 

Stock markets are taking a hit due to a triple whammy of events overnight, namely the impeachment inquiry vote in the US Congress, the stalled trade talks with China and the disappointing inflation data coming out of the PCE print. Wall Street has lost confidence coming up to the non-farm payroll/unemployment print tonight while European stocks also fell alongside commodities like oil and proxies such as the Aussie and Kiwi. Only gold is holding on, getting back above $1500USD per ounce again.

Looking at the action on Asian markets yesterday, where the Shanghai Composite fell again as the contracting PMI print stayed off risk taking, falling nearly 0.4% lower to 2929 points, while the Hang Seng Index moved the other way, up 0.9% to be at 26890 points, staving off the stall below the previous weekly high and weekly downtrend line. Future’s are indicating a pullback however, so don’t get too excited, and continue to watch the low moving average at around 26500 points for signs of an inversion:

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