Macro Morning

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By Chris Becker 

Risk sentiment continues to be all over the place with Wall Street falling on Friday night, despite a strong US jobs report that saw over 225K jobs added in January, although of course average earnings remain anemic. The market responded with a higher USD, lower bond yields as the 10 year Treasury fell to 1.57% in a new low, with almost no chance of a more easing by the Fed in March’s meeting. Combined with the falls in stocks, this sets the sentiment for the month ahead, summed up in one word – volatility.

Looking at Asian share markets performance on Friday where the Shanghai Composite was flat throughout the session but rallied at the close to finish just 0.3% higher, closing at 2875 points while the Hang Seng Index went the other way, losing 0.3% to 27404 points. fulfilling the previous bounces and almost getting back to its last support level. I can still see a deadcat bounce here with the 27000 point level the critical area that needs to be supported – look at daily momentum and the low moving average:

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