by Chris Becker
Winter maybe finishing in the northern hemisphere, but that cold chill that is the Mining GFC is still being felt across risk markets. Apart from the Trump nonsense in Nevada, the big event overnight was the DOE oil inventory report which showed increasing inventories, but big declines in gasoline and distillates, which gave the crude markets a boost and helped in the last few hours of US share trading. This wasn’t enough to arrest the declines in other bourses as safety was found in the bond markets – especially UK gilts as Brexit continues apace. Gold tried to breakout on the confusion as pound sterling continues to fall.
The Shanghai Composite slipped is itching to break free and get up to 3000 points with a nice post-lunch rally yesterday up to 2928 points. 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. Note this is for now only a bounce, not even a bear market rally and could reverse very easily on weak conviction:
