By Chris Becker
Absence makes the heart grow fonder or something like that. There’s been a few big moves while I’ve been away, which keeps my indicator rate at 100%! Last night saw stocks take a hit on the back of very poor inflation figures from the twin globalpowerhouse that is Chimerica. This in turn pushed the USD over its cliff, sending all the majors up in response and bonds bid right across the board an curve. We can almost guarantee no rate rise this year from the Fed on the poor data, and the USD weakness will give emerging markets some breathing room, but this is not good for confidence. Gold has broken out significantly on the mayhem, while oil and other commodities and proxies have rolled over.
Recapping Asia’s session yesterday, where the Shanghai Composite is trying to break out of its sideways funk but is failing. It fell a little under 1% yesterday to 3262 points and remains well under resistance, former support at 3400 points and no positive momentum:
