By Chris Becker
Again, markets are in the thrall of a US President’s comments, with Trump threatening tariffs against France – while in France and celebrating 70 years of the NATO Alliance – and conceding that the US/China trade deal may not go through until the election. US stocks markets flopped as a result with a rush to safe havens like gold, bonds and Yen, with the USD continuing its slide down.
Looking at the action on Asian markets yesterday where the Shanghai Composite was looking to put in a scratch session, helped by a better Yuan fix but then surged at the close to finish 0.3% higher at 2884 points, still shy of the 2900 point level. The Hang Seng Index slipped however after gapping down horribly at the start of the session to be off only 0.2% at 26391 points, with daily futures indicating a slump on the open this morning in the wake of Trump’s comments on the China deal. This would take out recent daily support and possibly send the bourse closer to monthly support nearer the 25400 level:
