By Chris Becker
Bond markets yet again proved why they’re so important to global risk last night with a continued rout, starting in European peripherals and extending into US treasuries (and of course, Aussies after yesterday’s RBA debacle) which also dragged stocks down. A surprisingly poor US trade deficit, which is set to subtract from Q1 GDP and rising oil prices, with WTI crude jumping above $60USD per barrel also dominated fear.
Recapping Asia’s session, the Shanghai Composite slumped significantly, down over 4% while the Hang Seng only lost 1.3% as the bubble, built upon a property bubble continues to froth over, mainly on rumours of margin tightening. I expect a retracement back to former resistance, now support at 4000 points, but anything can happen from here:
