by Chris Becker
Markets are loving the returned dynamic of oil prices pushing risk markets higher as no bad news is good news for crude, where traders are reading into machinations that the major producers will cut or at least freeze output soon. This plus US inventory reports of lower stocks and lower production rates sent crude oil soaring, dragging along stock markets and sending Treasury yields higher as safe havens are left behind. In Europe all eyes will be watching the ECB monthly interest rate meeting tonight, with possible repositioning beforehand as the Euro tumbled against USD but King Dollar remains on the mat as emerging market currencies surge.
Recapping China’s markets first, where the Shanghai Composite snapped yesterday, closing the bearish rising wedge pattern I’ve been warning about, closing 2.3% lower and below the crucial 3000 point support level. The target for this move, if supported with no new highs today would be support at 2850 points or so:
