by Chris Becker
Market reaction to terrorist events – in Europe at least, since we don’t cover similar or worse events in other parts of the world – have slowly devolved into numbness. The US dollar rose slightly, as did bonds on a small safehaven run, but stocks barely moved with the S&P500 down 0.1% and European stocks actually closing in the green. In commodities, the usual volatility in oil dried up while gold saw some support. The slow economic calendar and the short trading week is leading to lower volumes and less volatility.
Recapping Asia’s session yesterday where the Shanghai Composite didn’t follow through its ebullient Monday session (shown on the daily chart below), slipping 0.6% after a near 5% gain since Friday last week. Heavy resistance at 3000 points is key here and a weekly close above that level will have the bulls in control:
