By Chris Becker
A one-two combo of poor results from tech behemoth Apple and a retracement in consumer confidence sent risk flying for cover overnight. It didn’t help that energy stocks were battered as well by retreating bets that Russia will call for production cuts in oil as both markers dived for cover below support. In currency land, BOE Governor Mark Carney caused another fat finger in Pound Sterling which tested a new low against – well, everything – even when he suggested more rate cuts are not coming this year. The USD lost ground against most of the other majors on the back of the consumer confidence print including gold, which made a new daily high for once!
Looking at Asian stocks first, where the Shanghai Composite slumped at the start before eking out a very small uptick for the day, to 3130 points and still building above the closely watched 200 day moving average. My target at the former high at 3140 is almost done and a close above that level would be require to turn this into a proper rally:
