Macro Morning (Yellen into the wind)

By Chris Becker

An interesting night on world markets, punctuated by a solid German IFO business conditions survey although this was taken before the VW emissions scandal and the broad lack of trust in German corporates has now evaporated. In the US the durable goods order print for August fell but not as much as expected while initial jobless claims were also surprisingly good. Fed Chairman Janet Yellen’s speech, where she all but confirmed the Fed wanted to raise rates this year, sent markets a flurry, but not as much as expected. European markets were sold off heavily, while the US dropped only 1% as commodities fell while bonds were very steady.

Recapping Asia’s session, where the heavily controlled Shanghai Composite managed to finish above terminal support at 3000 points again, rising just under 1%. The daily chart still points to a downtrend here with no resolution in sight as we bounce along: