Macro Morning

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Macro Afternoon

Risk sentiment is still flying high despite more disturbing inflation prints in Brexit-land and Euro-land overnight.  European stocks had a pause while Wall Street continued to lift higher with the recent weakness in USD flipping with Euro pulling back below the 1.02 level while the Australian dollar also eased off the throttle to finish below the 69 handle this morning. Bond markets were largely contained with more roundtripping of yields with 10 year Treasuries staying above the 3% level as US interest rate futures still imply a 80bps rate rise at the next Fed meeting. Commodity prices were still volatile with Brent crude losing nearly 2% to retrace down to the $105USD per barrel level while copper took back most of its recent gains and gold struggled to finally close below the $1700USD per ounce level.

Looking at share markets in Asia from yesterday’s session, where mainland Chinese share markets pushed higher after the lunch break with the Shanghai Composite up 0.7% to 3304 points while the Hang Seng Index advanced further to recover its previous losses, closing up 1.1% at 20890 points.Sentiment was really waning on the daily chart with considerable overhead resistance creating a series of lower daily lows as price retraced below the early June lows around the 20600 point area before yesterday’s move. Daily momentum readings that were oversold have now reverted but this remains a swing play only until we see a substantial close above the high moving average proper:

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