By Chris Becker
The King is dead. With last night’s poor GDP print in the States, everyone (but the Fed it seems) has realised that talk of higher rates anytime soon is just that, talk. The US Dollar Index fell swiftly through its terminal support and all the major pairs, including Aussie rose higher as did the commodity complex, but stocks were smashed. At the same time we’ve seen the love affair with European (read: German) bonds go sour with a failed auction overnight sending yields up across all markets, especially the Bund which rose a huge 12 basis points, almost doubling its yield!
Recapping Asia yesterday, the Chinese markets were relatively quiet with the Shanghai Composite finishing dead flat and the Hang Send down only a point or so. The satellite bourse, the ASX200 was smashed on post-short squeeze profit taking and the sovereign rating potential downgrade, losing nearly 2%, with last nights rout on European/US markets pointing to bigger falls this morning:
