by Chris Becker
Commodities are pushing up stocks, particularly in emerging markets as the absence of earnings and economic data leaves suitable catalysts off the table, as most European markets were closed for holidays to add to the quietness. The US dollar remains strong against the majors but is slipping against emerging markets as oil broke free to surge higher alongside industrial metals as Chinese and peripheral bourses started Monday strongly after a poor showing of Chinese data on the weekend.
Recapping Asia first where the Shanghai Composite lifted nearly 1% to 2850 points, almost up to the high moving average band but not over it. Price had been below the low moving average for over a week and oversold technically so a rebound should not be surprising – but 3000 points overhead is the key resistance level:
