Macro Morning

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Macro Afternoon

Risk sentiment remains solid despite the ECB coming out flying with a 50bps rate hike overnight, with Wall Street and European stocks actually not that fussed, while currency markets absorbed it with aplomb. The USD remains somewhat weak against the majors although Euro didn’t fly as high as expected, with the Australian dollar firming above the 69 cent level.  Bond markets saw more roundtripping of yields with 10 year Treasuries retracing back below the 3% level as US interest rate futures still imply a near 80bps rate rise at the next Fed meeting. Commodity prices were still volatile with Brent crude falling back to the $100USD per barrel level before recovering while copper and gold both lifted, although the latter did roundtrip violently below the $1700USD per ounce level.

Looking at share markets in Asia from yesterday’s session, where mainland Chinese share markets tried to clawback their early morning losses but slumped going into the close with the Shanghai Composite finishing down 1% to 3272 points while the Hang Seng Index has retreated further to lose 1.5%, closing at 20574 points. Sentiment continues to wane on the daily chart with considerable overhead resistance and daily momentum readings remaining oversold as the previous swing play reverts back to the downtrend:

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