by Chris Becker
The relief rally in stocks in Asia continued overnight as European bourses soared to new highs on the back of higher economic sentiment but then hit the Stop sign when risk travelled across the Atlantic. Surprising 3Q results from bellweather stocks could not lift the S&P500 higher, dragged down by energy stocks as oil slumped again alongside industrial commodities and of course gold. Bond markets were relatively calm with no large swings as the US CPI print gave no surprises. The USD continues to gain supremacy against the majors as Euro moves ever closer to parity.
Recapping Asia’s session where the Shanghai Composite began the session well but sold off in the afternoon for a scratch result, staying just above 3600 points. The daily chart shows overbought action here but there is a sign of congestion here for a possible breakout up to 4000 points as selling resistance disappears:
