The US economy is booming because new house sales are at an eight year high? Sounds like a nice story so stocks ran with it last night, alongside a very positive German ZEW confidence survey, so markets on both sides of that Atlantic surged. Commodities were mixed – well no, gold was flummoxed as oil rose on the both of the confidence, with a slight lift for copper as well. In currency land, the USD firmed once again as rising rate bets moved to a higher level, sending Euro and Aussie down which should support the local bourse today.
Recapping Asia first where the Shanghai Composite has taken back all of its Monday gains, down 0.7% to remain just above support at 2800 points. I’m still watching the previous intraweek low for a breakdown here with my target the former low at 2600 points as there seems to be no confidence on the upside:
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