By Chris Becker
Reaction to the Federal Reserves minutes from its last meeting saw the USD rally against everything, except gold strangely, with stocks mixed on both sides of the Atlantic. The bet that the Fed will raise rates in December is firming to more than two thirds, driving this USD appreciation and selloff of Treasuries as yields spike. Stocks are getting a slow start to earnings in the US as well, particularly the tech sector with oil retracing to below $50USD on the WTI contract as no confirmation of a production freeze or cut is found.
Recapping Asia’s session yesterday, where the Shanghai Composite had a slight setback in its post holiday rebound, falling 0.2% to 3055 points, still moving away from hesistation around support at 3000 points. Momentum has now turned positive on the daily chart but price remains below the 200 day moving average, so don’t get too excited yet:
