by Chris Becker
What a week it was, and what a week to end the trading year (more or less) with the Fed set to raise rates just as China begins its multi-tier campaign to ease the Yuan as the commodities GFC rolls on with renewed pressure. Friday night saw stocks slump over 2% on both sides of the Atlantic as oil crashed again, this time taking out the GFC lows. Just the right time to pull the confidence rug from under global markets as the Fed meets later this week for its first rate rise in 7 years. The fact we’re even discussing the ramifications of what will be a meagre 0.25% rise is evidence that global markets remain as fragile as they did in 2008.
Starting with Asia’s session and where the Shanghai Composite finished the week with a weak scratch session, closing at 3434 points, clinging onto support at 3400 points. This is the previous resistance level through October and must hold but I think if this commodities rout continues we’ll see terminal support at 3000 tested, good finance data over the weekend be damned. This is a rollover:
