by Chris Becker
US markets reopened after the long weekend and followed European markets higher before finishing exactly where they started. This false breakout dampened the hopes that the Mining GFC is over, even after a strange post lunch rally on Chinese stocks following the near-missed GDP result. Crude oil was mixed with WTI slumping nearly 4% while Brent stabilised with a similar divergence in gold (down) and copper (up). Bonds were basically unchanged with some minor selling on US Treasuries.
Recapping Asia’s Tuesday where the Shanghai Composite reacted very strangely to the GDP print, with a huge surge just before the 2 hour lunch break and then continuing to move up thereafter. It closed 3.2% higher at just above 3000 points rebounding off the 2900 point low line that may provide a tenuous support level going forward. I’m still watching the daily downtrend line which remains intact:
