By Chris Becker
Another retreat in risk overnight on the back of slumping oil prices with both oil markers now in bear market territory, dragging energy shares down on the S&P500 while tech stocks remain buoyant. While oil is now down over 20% since the start of the year – suck on that OPEC – other commodities are trying to regain strength, particularly gold which rebounded overnight as USD took a breather.
In Asia yesterday the Shanghai Composite was the standout due to the MSCI rebalancing, closing 0.5% higher to 3156 points, once again trying to build above key support at the 3100 point level. Obvious resistance here at 3150 needs to be cleared soon as price is clustering just below the 200 day moving average, indicating the bears remain in charge:
