by Chris Becker
Forget economic data or fundamentals, markets moved to the beat of central bank waffery overnight as Fed Chair Janet Yellen all but admitted that the Fed will be dovish until its hawkish about global and domestic growth, thus providing risk markets the catalysts to burn ever higher on a “new normal” of lower interest rates. Stocks, bonds a nd gold were bid across the board as the USD was sold off lifting the majors which will have more of an effect than the former in the long term. What data there was showed that house prices in the US are continuing to rise at double or more the pace of inflation and consumer confidence remains elevated – so maybe the hawks are right to have ruffled feathers this morning.
Recapping Asia’s session where the Shanghai Composite fell out of bed, down 1.3% swiftly after hitting heavy resistance at 3000 points earlier in the week, now at 2919 points. Here comes the retracement but after Yellens speech, we might see a rebound here. Nonetheless unless the market gets above 3000 soon, its all moot:
