by Chris Becker
A hook and a deflecting punch from economic data last night could not stop the rally in USD, which is sinking emerging markets and their currencies. The ISM print showed a strong surge in service company expansions but was knocked by a very weak private payroll print suggesting jobs growth is easing. Combined with a recalitrant Fed still hell bent on “normalising” interest rates, the confidence is being pulled out from underneath stocks with the bull market looking exhausted. The one highlight is oil maintaining its current levels, which is arresting the correlated stock declines, although industrial metals are getting sold off left right and center.
Recapping Asia where the Shanghai Composite did not follow through with its previous surge, slipping a few points and remaining just below the 3000 point level. This move reeks of short covering only so watch out below if 3000 points is not breached by end of week:
