24.06.22 Macro Morning
Chris Becker | Jun 24, 2022 10:12
More overnight volatility on equity markets although a late bounce on Wall Street post Fed Chair Powell’s comments that a recession is likely to be avoided. In currency land, Euro pulled back in line with other undollars against USD, as commodity currencies continue to flounder with the Australian dollar now below the 69 handle. Bond markets saw a larger retracement in yields, with 10 Year Treasuries pulling back to the 3% level before rebounding up to 3.1% while interest rate futures came back slightly further to only indicate 185 bps in rate rises by the Fed this year. Commodity prices fell back again, with oil prices falling more than 2% while gold again slipped well below the $1830USD per ounce level.
Looking at share markets in Asia from yesterday’s session, where Chinese share markets accelerated higher going into the close with the Shanghai Composite closing more than 1.6% higher to 3320 points while the Hang Seng Index has gained nearly 1.3%, closing at 21273 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 but this lack of overbought momentum is telling without any substantive moves yet above the high moving average area. 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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