Daily Alert – Thursday 19th May 2022: Powell, China drive down equities

Mark NugentDaily Alert, May 2022

Daily Alert – Thursday 19th May 2022: Powell, China drive down equities

Good morning.

Yesterday I said I was waiting to see if Fed Chair Powell’s perceived hawkishness would be limited to the pause in prices that we were seeing, or if he would cause a reversal. Well, it was the latter. Equities lost all the prior day’s gains and some. Risk sentiment was strongly risk-off. It was not just Powell who soured the market. Lockdowns in China catalysed fears of continued disruption to global supply chains. Fortunately, I managed to get out at breakeven, having moved my stop loss to the entry price after Tuesday’s gain.

There is little on the calendar today and tomorrow. Unless we see some solid risk-on or risk-off sentiment, I suspect I am done for the week.

Have a great weekend when it comes. We will be back on Monday.

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