By Chris Becker
The tone of risk markets for the month that follows has almost always been set by the US non-farm payroll – or unemployment print – on the first Friday night. And for awhile now, good news for jobseekers and rising wages is bad news for stock market speculators as the probability of the US Fed eventually raising rates off the floor they’ve sat on for nearly 8 years continues to rise. All equity markets reacted badly to the good NFP print, with smart money running to bonds. Adding to the risk off mood was a rising oil rig count in the US, now up three weeks in a row.
As usual with Monday’s recap, we’ll look at the markets with a broader weekly view. Starting with Asia first, the Shanghai Composite finished the week up 2% and just above its 200 day moving average. A relatively tight range between resistance at 3800 points and long term support at 3500 points continues to form with a distinct lack of buying support as the bubble deflates:
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