Market Quick Take - May 28, 2020
A wild day for the US equity market yesterday as a steep and rather large sell-off yesterday was quickly corralled and entirely reversed into the close of trading, taking the S&P 500 back above its 200-day moving average. A bit of consolidation has settled in overnight as we ponder the EU recovery package as EURUSD trades at 1.1000 and US-China tensions as the yuan is perched at cycle lows.
Market Quick Take - May 27, 2020
US indices rose to new highs through major resistance yesterday, but were sold rather heavily into the close, keeping the technical situation somewhat in limbo. Overnight saw what seems the inevitable bounce-back in risk sentiment, even as the USDCNY exchange rate has pressed higher and could trigger unease on whether China intends to allow its currency to weaken further.
Yuan in Focus awaiting US Rebuttal
Asia equities continue to trade higher sweeping aside the mounting tensions between the US and China, instead focusing on the perceived positives which have driven risk assets in recent weeks. Namely economic optimism surrounding reopening economies, slowing COVID-19 case growth and expanding central bank balance sheets, with the pledge to continue to backstop asset prices as and when needed.