by Chris Becker
Last night saw a continued recovery in stocks, with oil leading energy stocks higher across both sides of the continent, and lower growth expectations in Europe leading to speculation of more ECB easing to follow. Oil lifted 5-6% across both markets as Russia and Saudi Arabia continue to nut out a production freeze to “stabilise” prices. Bonds more or less tread water as well as the Pound came under increasing pressure as “Brexit” momentum builds. No major economic releases overnight to cause any wobbles!
Starting with the Shanghai Composite, let’s look at Asian bourses first, where it rallied over 2% following the removal of a key regulator. The daily chart shows a potential bottom here at the 2600 point level as short term price moves above the high price short term moving average. I’m still watching for a followthrough breakout to 3000 points, but not holding my breath:
