Macro Morning (short covering)

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By Chris Becker

Its all about the shorts in risk markets, with the inevitable big bounce after some very oversold action coupled with the end of month and end of quarter rebalancing. After an ebullient Asian session, European stocks surged as the Euro dropped on a solid German unemployment print while EZ wide CPI slipped into deflation again. US stocks also rallied as the dumkopfs in Congress narrowly averted another government shutdown. Gold fell while copper rose nearly 4% in London, as oil oscillated around a tepid inventory report.

Recapping Asia’s session, where the Shanghai Composite was the weak lettuce leaf in a bullish session, only lifting 0.5% after a lack of buying support post lunch, finishing just above terminal support at 3000 points. This remains a weak market, but unable to break below 3000 points decisively:

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