By Chris Becker
European bonds were bought overnight as EU wide retail sales came in lower than expected as the Euro gained on reports from the ECB that more QE is likely if inflation doesn’t rise appreciably. So, expect more QE! In the US the latest ISM results were very positive, increasing bets for an interest rate rise and dragging 10 year Treasuries down. The commodity price collapse abated slightly overnight although Brent crude is now below $50USD per barrel.
Recapping Asia’s session, where the shakeout in the Shanghai Composite continues, down nearly 2% to below 3700 points again, continuing to oscillate around the 200 day moving average. It’s still well below the critical 4000 point resistance level as selling pressure mounts with a lack of real buying support or positive momentum as we watch the long term support at 3500 points:
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