By Chris Becker
Last night saw an exhaustion bounce in risk markets as the Chinese turned Japanese in trying to forestall their crashing stock markets with some good ole intervention. Coupled with no new bad news on Greece, this gave European and US stocks a bid with bonds only slightly sold off as USD remained strong, but commodities dragged up as well. The BOE held fire on its interest rates settings while a poorer than expected initial weekly jobless claim print in the US gave some renewed hope to a Fed holding off a bit longer.
Recapping yesterday’s session in Asia, where the Shanghai Composite bounced on aggressive intervention, up 200 points or nearly 6% to 3709 points, but still a long way to the top. Bouncing off long term support and getting back above the 200 day moving average helps here, but the SSCE is long gone from being a proper market now!
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