by Chris Becker
So there it is, the Fed has had its hand forced by a stellar US unemployment print on Friday night and the December rate rise is all but baked in, sending the USD into the stratosphere and everything undollar, Down Under. (Thats a play on words btw). Interestingly, stocks barely moved on the report with the only exception being SPI Futures which are likely to fall at least 1% on the open due to the weekend Chinese trade figure print, which has a surprisingly slump in exports. All the major currencies fell against the USD, particularly Euro and Aussie, while bond yields soared across the board with the 2 year and 10 year Treasuries hitting new crucial levels. Gold continued its journey south to the $1100 level while oil and other industrial commodities fell 1 to 2% on USD strength.
Recapping Asia’s Friday where the Shanghai Composite continued its journey through resistance at the 3400 point level by lifting nearly 2% with my expectations of a retracement completely wrong! We’re on our way to 4000 points from here as support firms from here, albeit a little overbought:
