Macro Morning

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By Chris Becker 

The Fed surprise has turned into a Super Tuesday surprise with the promise of a moderate Democrat in the form of VP Joe Biden boosting Wall Street’s hopes that no stinking socialist will grace the White House anytime soon. Stocks soared, surpassing the 4% level with the Dow up 1000 points again, with traders forgetting about the coronavirus for a change. Helped along was a better than expected ISM services print, the Canadian central bank cutting rates by 0.5% and crude inventories lower than expected. A packed night and a volatile session to follow here in Asia today.

Looking at Asian share markets from yesterday where the Shanghai Composite was trying to get back above 3000 points and then surged at the close to finish up 0.6% to 3011 points. Meanwhile the Hang Seng Index put in a scratch session to finish 0.2% lower at 26222, barely holding on. This bounce has almost no life in it with momentum still clearly against he market, still requiring a follow through above the low moving average level at 26400 points at least:

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