by Chris Becker
In the post GFC bizarro world, confident central bank comments are reflected by the markets as doom and gloom. Last night saw Fed Chair Janet Yellen give the green light to rate hikes, as “confidence” builds that the US economy is growing well. US stocks fell on further good news as the ADP private jobs report printed strongly indicating tomorrow nights NFP will be even better, while oil collapsed on an uncoordinated OPEC and a blowout in the DOE crude oil inventory report. Conversely, ammunition for the ECB to get going on stimulating was provided by a dead flat CPI result across Europe with deflation looming once more.
Recapping Asia’s session, where the Shanghai Composite rallied over 2% after lunch, to just below 3600 points, trying to get back to where it started and stalled. Support at 3400 points is fairly strong here, as it formed the previous resistance level through October. This is going to be a long December I feel, going sideways:
