By Chris Becker
US stocks almost hit a record high overnight as the one-two punch of a solid CPI report and a hawkish Janet Yellen paved the way for an inflationary environment going into 2017. The S&P500 closed just short of a record high, European stocks rallied, bonds sold off alongside gold and other “havens” like Aussie dollar and Yen as the USD surges to new highs.
Looking at Asian stocks first, where the Shanghai Composite was having a tepid day to start with, a few points down going into the long lunch before finishing just in the green at the end of the session, up 0.1% to 3208 points. My next target at 3400 points is still in sight, but a pullback to previous resistance, now support to 3140 or so would be normal:
