By Chris Becker
Stocks slipped and Treasury bonds rose as news that not all is well in consumer mecca-land with manufacturing figures in the US coming in surprisingly lower and while industrial production rose for the fourth month in a row it was a tepid number. Combined with a drop in oil prices pulling energy stocks down, this made for another nervous re-rating of the Federal Reserves interest rate agenda, with USD falling slightly against the majors.
Looking at Asia’s start to the week yesterday first, where the Shanghai Composite opened flat but then plunged after the lunch break, losing 0.7% to 3040 points as the Yuan fix came in very low once more. As I cautioned yesterday without a significant close above the 200 day moving average this sideways move to end the long running bear market won’t have any traction. Terminal support at 3000 points remains the key area to watch:
The full text of this article is available to MacroBusiness subscribers