By Chris Becker
Not much to say about market activity last night, holding pattern comes to mind as risk finds itself biting on fingernails waiting for central banks to give them some direction. The BOJ and Fed meet later this week and with no economic releases beforehand, stocks put up mainly scratch efforts overnight with the USD losing some shine as commodities rallied somewhat due to a mix of local and external factors. Bonds were relatively quiet too with Treasuries losing someground as traders reposition for the Fed, which is still expected to hold its rate rise agenda this week.
Recapping Asia’s session yesterday first, where the Shanghai Composite came back from its holiday and jumped out of the gates, up 0.7% to 3026 points. The Chinese bourse has been sitting on terminal support at 3000 points and if it breaks we’re going down to the May/June lows at 2850, so this needs to hold with another attempt at the 200 day moving average at just below 3100 is on the cards this week:
