In a rush? Here’s the key takeaway
- There are two ways to think about the market’s reaction to the not entirely unexpected trade news from Bloomberg that China doubts they’ll be able to do a long term trade deal with President Trump. The first is that stocks aren’t off too much all things considered so the market must have been sceptical about the deal all along anyway – the moves in gold and bonds though belie that.
- The second way to look at it is that we’ve now seen both the S&P 500 and US 10’s back away from significant resistance – so the move higher in yields and stock prices may have run into the wall that will hold for a while. Either way, today’s deluge of manufacturing PMI’s and then US non-farms tonight will be an important factor in where markets head next – at least in the immediate term.
- Elsewhere forex traders too respected overhead resistance with USDJPY down 0.8% to 107.98 while copper dipped 1.8% and oil lost 1.9% in WTI terms to $54.03. So it’s been a bit of a risk off day.
Now, let’s dive into this morning’s newsletter.
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