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By Chris Becker
The caution in Asia extended on to European and US bourses overnight as traders weighed up the trifecta of a higher USD, the continued selloff in bonds and falling oil prices in the wake of a Trump Presidency. This lack of volatility will build up once more as risk managers continue their re-positioning going into next months Fed meeting.
Looking at Asian stocks first, where the Shanghai Composite continues its melt up aftering finally bursting through resistance forming a new bear market rally. Yesterday it lifted 0.5% to 3210 points with my next target at 3400 points still on the cards, possibly with an overshoot to the previous highs:
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