Well there it is, no rate rise from the Fed overnight, but an indication that future rate rises – as early as December – are coming. I guess a month is a long time according to the Fed, and 1937 seems millenia away. This hawkishness obviously made the US dollar soar against the majors, poleaxing the gold bulls and strangely enough giving stocks a slight bid. Oil prices shot up on reports gasoline inventories have fallen as demand rises in the ‘State.
Recapping Asia’s session where the Shanghai Composite fell nearly 2%, maintaining resistance at the 3400 point level. No follow through on the back of the recent interest rate and reserve rate cuts, the stronger USD and weak momentum could see this breakdown and revisit the 3000 lows:
The Nikkei 225 rose around 0.7% but climbed further in futures trading as the Yen weakened signficantly against USD. If it climbs above the Monday high we’re on for a new breakout:
