by Chris Becker
The reversal in USD strength coupled with falling commodity prices characterised market action in the last 24 hours as we see continued slumps in global trade output – namely Germany and China. Tech stocks in the US were slammed last night even amid speculation of another massive merger (Dupont and Dow Chemical). The USD lost ground against everything but especially Euro and Cable as the Aussie dollar remained stable. Commodities slipped once more with oil falling even as a new inventory report shows falling supplies. Bonds too saw a broad selloff in Europe while US Treasuries remained stable.
Starting with Asia’s session and where the Shanghai Composite had a scratch session, absorbing its CPI print with aplomb and closing at 3472 points, just above support at 3400 points. This is the previous resistance level through October but I think if this commodities rout continues we’ll see terminal support at 3000 tested:
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