06.07.22 Macro Morning
Chris Becker | Jul 06, 2022 09:40
Not a fun night of action if you’re a commodity trader overnight as risk sentiment crumbled in the wake of recession fears across both sides of the Atlantic, with European shares dropping sharply while Wall Street returned from its long weekend almost unscathed. The USD rose strongly on the defensive mood against all the undollars, with Euro and Pound Sterling smashed down to new lows, while the Australian dollar returned below the 68 handle despite yesterday’s big rate rise by the RBA. Bond markets saw a tightening of yields across the curve, with 10 Year Treasuries falling back to 2.77%, with interest rate futures also pulling back slightly. Commodity prices were hammered, with oil losing more than 9%, copper down 5% to almost make a two year low while gold fell more than 2%, crushed below the $1800USD per ounce level.
Looking at share markets in Asia from yesterday’s session, where Chinese share markets were dropping sharply going into the close before recovering with the Shanghai Composite closing only a handful of points lower at 3404 points, while the Hang Seng Index finished also dead flat, closing 0.1% higher at 21853 points. The daily chart was showing a desire to breakout above the previous highs at the 22000 point level but considerable resistance is still keeping this market in check, with session highs failing to match the previous false breakout tops. Momentum continues to rollover here, so be cautious of low volatility that could beget higher downside volatility soon:
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.