By Chris Becker
A disappointing start to earnings season in the US, coupled with renewed vigour from bets that the Federal Reserve is indeed going to pull that lever in December sent markets over the edge last night as the USD soared higher. With tech stocks selling off alongside banks as bellwether Alcoa disappointed, energy stocks dragged down as well as oil failed to make a new high on the rumor/fact/spittle of another “possible” production freeze from OPEC and non-OPEC members. Other commodities and there proxy, the Australian dollar, also dropped on the building risk-off mood.
Recapping Asia’s session yesterday, where the Shanghai Composite continues its rebound after a long holiday, up more than half a percent to 3065 points, clearly moving away from hesistation around support at 3000 points. Momentum remains negative on the daily chart and price below the 200 day moving average, so don’t get too excited yet:
