23.06.22 Macro Morning
Chris Becker | Jun 23, 2022 09:40
Several inflation prints and Fed Chair Powell’s comment regarding a “soft landing” around combating inflation in the US cause more downside volatility on risk markets overnight as Wall Street rolled over after what looked like a continuation of more positive results from the start of the week. In currency land, Euro continued to push slightly higher against USD, but the King remains on his throne against commodity currencies, with the Australian dollar pushed well below the 70 handle. Bond markets saw a retracement in yields, with 10 Year Treasuries pulling back from 3.3% to 3.1% while interest rate futures came back slightly to only indicate 190 bps in rate rises by the Fed this year. Commodity prices fell back again, with oil prices the sharpest, with Brent falling nearly 4% while gold again slipped well below the $1850USD per ounce level.
Looking at share markets in Asia from yesterday’s session, where Chinese share markets were quite negative with the Shanghai Composite down some 1.2% to close at 3267 points while the Hang Seng Index took back most of its gains for the week, down 2.5% to close at 21008 points. The daily chart was showing price anchored at trailing daily ATR support at the 20500 point level with daily momentum barely positive before the recent bounce and this lack of overbought momentum is telling. Price action is still a fair way from the May lows at the 19000 point level, but the overall market remains well contained:
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