By Chris Becker
As Christmas holidays approach, markets are really losing volume and impetus, as USD weakened slightly overnight, US stocks fell on profit taking and a surprising lift in US gasoline reserves pulled oil down as well. Yields are firming on sovereign bonds as a result, with a flat or slightly off day in Asia predicted by futures markets.
Yesterday in Asia, the Shanghai Composite had a swift rebound after selling off most of this and last week, gaining over 1% to close just on previous support at 3140 points. Momentum is still negative and price hasn’t cleared the high moving average, so no reason to get excited as this move is still on track to hit the next support level at 3000:
