08.07.22 Macro Morning
Chris Becker | Jul 08, 2022 09:16
Stocks have continued to rally post the latest FOMC minutes, in anticipation of tonight’s US unemployment print, with Wall Street and European markets both pushing much higher. The USD continued to rise however against all the undollars, with Euro approaching parity although Pound Sterling lifted off of near decade lows after Boris Johnson’s resignation. Meanwhile the Australian dollar pushed a little higher above the 68 handle in a very meek bounce. Bond markets continued their post minutes reversal with 10 Year Treasuries pushing through the 3% level, with interest rate futures continuing to firm up at least a 70bps rise at the next Fed meeting. Commodity prices remain volatile with oil prices bouncing back more than 4%, copper also lifting 4% while gold remains on the ropes at the $1750USD per ounce level.
Looking at share markets in Asia from yesterday’s session, where Chinese share markets dropped at the open but recovered going into the close with the Shanghai Composite up nearly 0.3% to 3364 points while the Hang Seng Index eventually recovered too for a similar result, closing 0.3% higher at 21643 points. The daily chart was showing a potential rollover building here as price action rejected the previous highs at the 22000 point level as considerable resistance still keeps this market in check. Futures are suggesting more upside on the open, so we could see another attempted breakout here to end the week:
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