by Chris Becker
Market action overnight can only be characterised as rebound following weeks of weakness and is probably only short lived going into tonights long awaited FOMC meeting. The key mover was oil, up 3% as the USD came back against the majors, a standout being the slump in Pound Sterling on a flat CPI print followed by an equally large fall in Euro on the back of a solid CPI print in the US. Bonds have seen an accelerated sell-off with the 10 year Treasury yield touching 2.25% with UK gilts exploding up to almost 2% as well. Non-Asian stock markets have nearly erased their Friday night routs, but tonights Fed meeting could see volatility return.
Starting with Asia’s session where the Shanghai Composite followed its great start to the week with a scratch session yesterday closing at 3510 points still going sideways bouncing off support at 3400 points. I’m watching the former highs at 3670 points for signs of a confirmed breakout, but this still looks unconvincing:
