Macro Morning

Advertisement

By Chris Becker 

Last night saw the latest FOMC meeting pass, where the Fed’s stance was more accommodative than expected, and coupled with inflation data that was slightly weaker than expected, caused the bond market to tip over into a buying frenzy, with the 10 year yield falling from 0.83% to 0.73%. The USD fell, especially against Yen on the safe haven bid while the other safe haven, gold, was pushed up to almost a monthly new high. Stocks are getting wobbly, with the first dip forming across equity markets since their combined breakouts in late May.

Looking at share markets in Asia from yesterday’s session where the Shanghai Composite pulled back from its recent gains, falling nearly 0.5% to 2943 points, while the Hang Seng Index was largely unchanged at 25044 points. Price is still poised here above the previous sideways highs from April as this breakout takes a little pause from being so overbought, but support at those highs must hold or it will be short lived:

Advertisement

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe