Chinese stocks rebound, but bears remain in control

Michael McKenna
Head of Editorial Content, Saxo Bank

The forex space into today's European open sees a soft euro, comparative USD strength by default, and the CNY trading in a 6.844-6.86 range overnight, reports Saxo Bank Head of FX Strategy John Hardy.

"We also saw a pronounced spike in the Turkish lira, which pushed through the 5.40 area versus USD overnight," says Saxo's forex chief.

Down under, the AUD maintains a bid despite no real support from the Reserve Bank of Australia's meeting and statement.

In stocks, Saxo equities head Peter Garnry says the rebound in Chinese shares overnight does not shift the overall narrative with trade war fears and higher USD rates still dominant in APAC.

"The bears remain in control [of the Chinese stock market]," Garnry concludes.

In commodities, Saxo head of Commodity Strategy OIe Hansen reports that the strike action threatened at the world's largest copper mine in Chile may have been averted. "BHP Billiton has apparently blinked," Hansen says, adding that a five-day mediation session is set to follow.

Finally, Saxo technical analyst Kim Cramer Larsson says that the S&P 500 appears poised for a move on its all-time high.

For more on stocks, FX, commodities, and technical analysis, watch today's Morning Call in full.


Saxo Capital Markets (Australia) Pty Ltd prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Combined Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

Please read our disclaimers:
- Full Disclaimer (
- Analysis Disclaimer (
- Notification on Non-Independent Investment Research (