by Chris Becker
Well there goes February – did we need the extra day as markets were not happy with the start of the week/end of month nexus overnight. Stocks fell slightly as oil rallied while bonds were bought as the Chinese cut reserve ratios and European wide CPI print came in less than expected as deflation takes hold. A stronger US dollar was the result as the divergence in European and American inflation quickens.
Recapping yesterdays action, the Shanghai Composite fell sharply again, down nearly 3% and almost at terminal support at 2600 points. Watch out below if this tentative level is breached because the next support level is at 2000 points:
