By Chris Becker
Traders returned to their desks in the US overnight and the old meme returned: bad economic news = awesome for stock prices! The latest ISM services print showed mild expansion and added fuel to the fire that the Fed will hold off on another interest rate rise this month. This sent the USD down, dragging all the major currencies up along with stock prices and of course gold, almost back at its three month high. This catalyst should support Asian stocks today, except the Nikkei as the Yen strengthened measurably against USD.
Recapping Asia’s session yesterday, where the Shanghai Composite surged at the close, up 0.6% to almost 3100 points. This is getting close to a breakout above recent daily highs that we need to get past the local point of control:
