by Chris Becker
Crude oil is the major catalyst driving markets, and after Mondays gap down due to the stalled Doha meeting, its resurgence is pushing risk markets up as well. US stocks closed at a four month high and are approaching their historical high, which should lift Asian bourses that had a sharp selloff on Monday. The USD weakened against the majors, especially the euphoric Aussie dollar, which again will help Asia today.
Recapping China’s markets first, where the Shanghai Composite had a modest selloff on Monday, losing 1.4% but still closing above its key level at 3000 points. My target for this move remains 3200 or even 3400 points, but its the final stages as the bearish rising wedge begins to tighten:
