by Chris Becker
It shows the lack of confidence in risk markets if all it takes is a comment from the IMF chief regarding growth concerns that makes stocks slump and cash race to safe havens as US Treasuries and German Bunds saw huge bids, alongside a run away from USD into Yen. While the US ISM non manufacturing PMI came in strong overnight it was European factory orders which slumped unexpectedly that led to a selloff in German bourses. Chinese markets are carrying on like nothing bad is happening, although the wind might be taken out of their sails today with the Caixin services PMI print.
Recapping Asia’s session yesterday where the Shanghai Composite finally launched above the 3000 point level, up 1.5% to 3052 points in what could become an accelerated breakout up to 3400 points very quickly:
