by Chris Becker
It was all about USD overnight which is firming against its majors sending commodities, especially oil down and hence stocks as risk markets continue to move in lockstep. Without any major economic releases to go on, traders are hanging on the words of Federal Reserve wonks who keep repeating how strong the US economy is which is “bad” news for stocks. US Treasuries saw a strong bid as did the core European soveriegn bonds while the “other” safe haven, gold saw a large selloff. Oil fell 4% on both markers as emerging market stocks also retreated sharply as the weight of King Dollar bears down once more.
Recapping Asia’s session yesterday where the Shanghai Composite finally peeked its head above heavy resistance at 3000 points rising 0.3% on the day. A weekly close above that level will have the bulls in control, but for mind this is somewhat “too far, too fast” and a retracement is expected:
