By Chris Becker
To the moon Alice, I mean Janet – to the moon! So the Fed pulls the interest rate trigger and bond markets go nuts (that’s the technical term), stocks sell off while the USD goes higher against everything. In a case of where markets knew in advance that an interest rate rise was coming, but still reacted strongly, the Fed made a case for an aggressive rate rise agenda for 2017. Yields soared on US Treasuries with the hot money turning to USD as Yen sold off alongside Aussie dollar and of course the inflation hedge that’s leaving gold bugs naked. Its going to be a very interesting year!
Yesterday in Asia, the Shanghai Composite was looking to put in another scratch session but instead sold off in the afternoon to close right on key support at 3140 points. This was the same level unable to clear in August, so if broken today we could see a selloff down to the next level at 3000:
