By Chris Becker
A reprieve across risk markets last night as US stocks lifted the whole complex on better than expected earnings with bonds stable in preparation for the July FOMC meeting over the next couple of days. On the economic datafront, a solid UK second quarter GDP print, followed by moderate rises in US house prices, where offset by a slump in consumer confidence, well off recent highs.
Are we in the final death throes of the Great Chinese Stock Market Bubble? (sounds more impressive when you capitalise it). The Shanghai Composite closed down over 1.6% at 3660 points, still well below the critical 4000 point resistance level that is has tentatively held in recent weeks. This is right on the 200 day moving average with key support at 3500 points looming. Cross that and its all over:
