By Chris Becker
So the Fed held (as did the Kiwis this morning) mainly on the back of “slack” in the jobs market, plus the ever lower GDP forecasts, citing uncertainty ahead as the reason behind not pulling the interest rate lever for September. The outcome for markets was generally positive, with US stocks up 1% or so, with the USD weakening against all the majors and gold shooting higher alongside bonds. The punch bowl remains spiked for now.
Recapping Asia’s session yesterday first, where the Shanghai Composite remains stuck, lifting slightly yesterday to close just above terminal support at 3000 points. As I’ve been saying, 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 soon:
