by Chris Becker
US stocks rallied on a poorer than expected ISM result overnight, while European unemployment came in better than expected, in a reversal double shock that saw the USD fall and European stocks sold off. Both results question the divergent expectations of a rate rise and a deposit rate cut from the Fed and ECB respectively. Bonds rallied regardless while commodities were flat – except iron ore of course!
Recapping Asia’s session yesterday, where the Shanghai Composite is still trying to recover from its 6% slump on Friday, again barely finishing in the green at the end of the day, up 0.3% to 3456 points. Support at 3400 points is fairly strong here, as it formed the previous resistance level through October. This is all about confidence:
