by Chris Becker
Emerging market currencies and the continued rally in crude embiggened by a weaker USD is pushing risk higher and higher as the DAX pops, alongside US stocks, which will filter to the ASX200 this morning. Commodities are surging across the board, helping the Aussie dollar breach 78 cents for the first time in nearly a year! Last night saw the release of the closely watched ZEW Survey from Germany, which surprised on the upside on expectations of further stimulus emanating from the bowels of Brussels. In the US housing starts came in a bit weaker than expected but this was overshadowed by continued earnings results, where tech stocks were mixed and banks outperformed.
Recapping China’s markets first, where the Shanghai Composite gapped up higher on the open but closed with a modest 0.3% gain to be at 3042 points. My target for this move remains 3200 or even 3400, but its the final stages as the bearish rising wedge begins to tighten:
