By Chris Becker
Its a race to safety for risk managers as they weigh up the rhetoric vs the geopolitical reality across two fronts. Treasuries, gold and Yen were bid and stocks were left to their own devices on both sides of the Atlantic. Given the rise in Yen and the rising problems in Korea, Japanese stocks are likely to be hammered in Asian trade today while Aussie stocks glide on blissfully unaware.
Yesterday in China, it was a two part story as mainland stocks rallied in the afternoon, with the Shanghai Composite closing up 0.6% to 3289 points as it tries again to beat overhead resistance at 3300 points. The daily chart clearly shows that a breakthrough above that level should see an explosion upwards:
