by Chris Becker
The literal spectre of inflation – which seems non-existent in both the UK and the US as yesterdays CPI prints remained depressed in near deflationary territory – is not stopping the rate rise bets rising which is spooking markets. Last night stocks in the US and Europe fell as speculation continued to rise that the Fed may pull the trigger as early as June, with the US dollar firming as a result. Commodities continue to rebound particularly oil coming into tonights DOE inventory report while gold surged on the back of reports that George Soros is going long the shiny metal.
Recapping Asia first where the Shanghai Composite slipped again, falling nearly 0.3% to 2843 points, still unable to gain any traction. 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:
