by Chris Becker
Risk is back with a vengeance as an unexpectedly good Chinese trade data print results in a huge bid in equities and bonds coupled with rising oil prices and a strong start to US earnings, particularly banks. Asian stocks led the charge and European bourses took up the bit and while US stocks moved to new four month highs, it wasn’t as strong as bids in Treasuries outweighed. A big surge in official DOE crude inventories did not put a sizeable dent in crude oils pace higher as the market waits for the outcome of the Doha meeting. The Euro finally brokedown against USD as Yen weakened and Aussie dollar remains elevated going into todays unemployment print.
Recapping China’s markets first, where the Shanghai Composite launched higher on the trade results, pushing the rest of Asia along with it, up 1.4% to 3066 points remaining above its key level at 3000. I still contend this is setting up for a second stage surge up to 3200 or even 3400 points, but its the final stages:
