13.06.22 Macro Morning
Chris Becker | Jun 13, 2022 10:57
Well, there it is. Stocks lost there mettle on Friday night on both sides of the Atlantic and sold off sharply, bringing the whole risk edifice down with them. This all but confirms a new bear market in stocks as the various central bankers hit the breaks hard in their losing battle against inflation. The USD smashed everything undollar except gold with Euro, Pound Sterling and the commodity currencies all suffering, with the Australian dollar almost breaking through the 70 cent level. Bond markets saw a lifting of yields to new yearly highs with 10 Year Treasuries now pushing up through the 3.3% level for a four year high. Commodity prices fell back but oil remains strong, with Brent crude still above the $120USD per barrel level, while iron ore and copper dropped 2% as gold proved the most resilient to put in a new weekly high at just below the $1880USD per ounce level.
Looking at share markets in Asia from Friday’s session, where Chinese share markets were the odd ones out, with the Shanghai Composite closing some 1.4% higher to 3284 points while the Hang Seng Index remained unsteady, eventually closing down 0.3% to remain below the 22000 point level at 21806 points. The daily chart was showing price accelerating after breaking above trailing daily ATR resistance at the 21000 point level with overbought daily momentum helping translate into greater highs, but this stumble in line with other risk markets could remove the March highs near the 23000 point level as the next target:
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