By Chris Becker
A not so quiet night on markets although its a great time to be a bond holder or buyer as the BOE’s Mark Carney set the nervous sell buttons off on stocks as he handed down the UKs financial stability report following Brexit. This sent commodities falling and bank stocks with them as contagion in Italy and rising funding costs added to the anxiety. The USD has returned as King Dollar was bid against all the major pairs -except Yen, which is rising strongly against everything. Australian bonds are now at record low yields as the RBA held fire yesterday, brewing a small bounce in the Aussie dollar, which was quickly reversed as the commodity currency was sold off alongside the other usual suspects.
The Shanghai Composite followed through on its breakout by finally closing above strong resistance at 3000 points. I’m watching for another follow through today and then targeting 3400 on further momentum, but for mind this is a fool’s rally:
