by Chris Becker
The volatility from the Mining GFC is getting worse – or better depending on your point of view. Out of the gate following the Asian session, European stocks slumped falling over 3% as panic builds across global risk. The same fear gripped US markets, falling sharply before the US CPI print for December – showing no signs of inflation whatsoever – reversed fears and hope that maybe interest rates won’t raise and hence stocks rebounded, taking back most of the losses.
The same can’t be said for oil which is still getting hit for six across both markers. WTI fell nearly 7% while gold and currency markets were relatively benign. US 10 year Treasury yields fell below the closely watched 2% mark as well, showing signs of increased safe haven bids.
Recapping Asia’s session where the Shanghai Composite followed up its strange reaction to the GDP print with another volatile session, closing down 1% and below 3000 points again. I’m still watching the daily downtrend line which remains intact, but support is building here: