By Chris Becker
The relief rally has turned into unrestrained exuberance as 2Q US GDP surged to almost 4% year on year growth with weekly initial jobless claims coming in slightly weaker, combined with unfettered Chinese government buying of stocks has lifted all boats – sans bonds – across risk markets. Oil had a massive session, rising over 10% on both markers, as did most other industrial commodities except gold.
Recapping Asia first, where up until the final hour of trading it looked like another tepid day on the Shanghai Composite until a flurry of buying sent the bourse soaring higher by over 5% to above key support at 3000 points. It’s going to take another round of PBOC purchases to get to the real support at 3400 points as you can see on the chart below:
