By Chris Becker
An excellent durable goods order print in the US, coupled with steady if not exciting market action in Europe and Asia was then electrified by NY Fed President Dudleys comments on “normalisation of rates” will be extended to later this year. This sent US shares flying up 4% and bonds routed, the 10 year Treasury yield surging 10 points to nearly 2.2% while the USD rallied against the majors.
Recapping Asia, the falls on the Shanghai Composite are starting to moderate, following the PBOC interest rate with the mainland bourse losing 1.3% to remain below key support at 3000 points. Although extremely oversold, the target from here is the next level at 2200, evaporating all the gains of the bubble:
