By Chris Becker
As the Fed held to its interest rate rise agenda overnight, even as domestic inflation tapers off and in the face of what looks like a whimpering Trump fiscal plan, US stocks retreated as volatility begins to build. With one more hike left for the calendar year, Treasury traders are scratching their heads why when inflation is so benign, and rallied instead of falling. European markets were equally unimpressed as they await the BOE, BOJ and Swiss central bank decisions as well.
In mainland China yesterday the Shanghai Composite slid on the triple data release with FAI numbers spooking a little, sending the market down 0.7% to 3129 points, still clinging above key support at the 3100 point level. The daily chart’s bullish double bottom pattern remains firm with 3200 still the target:
