By Chris Becker
The first full day of the new trading year is over and optimism is ruling the Bloomberg screens as stock markets surge higher on the back of better manufacturing PMIs. The US ISM result overnight for December was much better than expected and comes after solid numbers from Europe last week resulting in a surge in USD against most of the majors, with gold and Aussie dollar the exceptions.
Yesterday the Shanghai Composite lead the charge, lifting over 1% to finish at 3135 points, remaining above the 200 day moving average. The daily chart below shows the correction since the November high but the oversold nature and the building of support here could limit further falls. Watch the Yuan:
