Macro Morning

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By Chris Becker 

A bath of blood on stock markets overnight with both sides of the Atlantic down a whopping 3-4% across the board! Fear is a powerful ally for selling, and fear is spreading faster than the actual coronavirus and its impact on the global economy. For stock markets, its the correction it needs to have after being so overbought for so long. It will not be a pretty day here in Asia with the return of Japanese traders to their desks adding to the fear and uncertainty. Gold, bonds and Yen will win out however.

Looking at Asian share markets yesterday where the Shanghai Composite is just hanging on, closing only a handful of points lower at 3031 while the Hang Seng Index finished 1.8% lower to 26820 points as it wipes out any short term support and looks set to re-kill this dead cat bounce. Price had failed to make a new daily high in almost a week, with daily momentum still unable to crossover to a positive reading with a return to the January and December lows at below 26000 points inevitable:

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