Macro Morning

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By Chris Becker 

The trading week is having a mixed start as concerns from the Asian trading session yesterday transferred to Wall Street, particularly the lack of progress on a US/China trade deal but also the escalating tensions in Hong Kong. While stocks are trading in the US, debt markets are closed for Veteran’s Day as commodity markets come off the boil, although gold is now down to a three month low.

Looking at the action on Asian markets yesterday where Chinese stocks fell the hardest with the Shanghai Composite down nearly 2% to be at 2907 points while the Hang Seng Index is doing even worse, down by 2.6% to 26926 points and wiping out all of the previous week’s breakout rally. This could get ominous as price retraces and stays below the previously clear resistance level at 27000 points, but futures are pointing to a possible fill above that level tomorrow as ATR support remains intact:

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