By Chris Becker
After a bloodbath (I prefer bath of blood) in Asian stocks yesterday, risk surged on London’s open sending European stocks higher and futures rebounding on a wave of short covering. This euphoria did not last as the night moved on into the New York session as German CPI came in dead flat with signs of deflation mounting and US house prices pointing to no further lift from that sector either. In essence it was a flat result, with some minor falls in Europe as risk retreated to safe havens in bonds, which all saw a solid bid, except emerging markets. Commodities oscillated, with oil ending up for the day while natural gas was sold off strongly and gold did nothing.
Recapping Asia’s session, where the Shanghai Composite was the best in a bad bunch, falling 2% to be just above terminal support at 3000 points as the epic head and shoulders pattern continues to form. Watch that neckline:
