by Chris Becker
Oil is gushing and pushing risk markets higher once more, as the tentative agreement to curb production by OPEC members led to a near 10% lift in WTI and Brent markers. This led to a rally in stock markets, led by energy shares as the USD remained steady while Treasuries and European bonds were sold off. And with no major economic releases save the FOMC minutes, there was nothing else for markets to react to.
Starting with Asia’s action yesterday, the Shanghai Composite lifted just over 1% and finally closed above its short term moving average high and previous terminal support at 2850 points. Suffice to say I’m watching this area for a breakout rally back up to 3000 points, but the base case is a sideways move as the bear market continues:
