By Chris Becker
The mood overnight remained sour as US stocks sold off on the back of the DOE inventory report raised concerns of domestic oversupply, sending WTI crude oil to a new 2 month low. Stalls in the trajectory of safe havens like Treasuries and gold did not transpire with Yen, which continued to strengthen against USD and the other majors. Tonight is the most important release on the economic calendar – US employment – and positioning beforehand is lacking confidence, as initial jobless claims and ADP private employment data came in quite firm overnight.
The Shanghai Composite had a scratch session, closing bang on 3016 points. Momentum is still pointing to a target around the 3400 level but this maybe more dependent on a continued weaker Yuan fix – here comes the 200 day moving average and the March high to breach next:
