By Chris Becker
Last night saw a big risk inversion on trade concerns as the Twit in Chief rolled out new steel tariffs and blamed the Fed and high USD, just as the latest ISM Manufacturing print came in with a surprise fall and contraction, particularly in employment. The USD tanked as a result, sending Euro and Aussie sharply higher while the Asian risk proxy USDJPY slumped, pulling Wall Street down by nearly 1% across the board. It’s going to be a sea of red across Asia today.
Looking at the action on Asian markets yesterday where the Shanghai Composite was up nearly 0.4% on the back of the PMI print, but has closed with a scratch session at 2872 points. Meanwhile the Hang Seng Index tried to recover from its Friday losses, closing 0.4% higher to 26461 points. The daily chart clearly shows that inversion and its going to take a lot more upside and positive momentum to get it back on track above 27000 points:
