28.06.22 Macro Morning
Chris Becker | Jun 28, 2022 09:56
Last night saw a little bit of downside volatility return to equity markets but it was all marginal as the huge gains from Friday night’s sessions across both sides of the Atlantic couldn’t be sustained. Keeping risk sentiment elevated was a strong US durable goods order for May, although the USD pulled back against most of the undollars, although it did lift against Yen slightly as the commodity currencies went nearly nowhere with the Australian dollar still anchored at the 69 handle. Bond markets saw another slight lift in yields, with 10 Year Treasuries pushed back up to the 3.2% while interest rate futures lifted slightly to indicate 185 bps in rate rises by the Fed this year – still down from well over 200bps a few weeks ago. Commodity prices were mixed again, with oil prices lifting more than 2% after trying to stabilise on Friday night, while gold rose was again under pressure to fall back below the $1830USD per ounce level.
Looking at share markets in Asia from yesterday’s session, where mainland Chinese share markets again pushed higher into the close with the Shanghai Composite up more than 0.8% to 3378 points while the Hang Seng Index has lifted more than 2%, closing at 22219 points. The daily chart was showing price anchored around the high moving average area but not yet pushing through as momentum remained positive but not overbought so this move swiftly out the blocks confirms Friday’s price action as a proper breakout. I’m a bit concerned with the overhead tail on yesterday’s candle that matches the previous false breakout top at the 22000 point level however:
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