By Chris Becker
Janet Yellen’s apparent return to dovishness has lifted all risk assets overnight as she signalled that the Fed is not going hell bent on reigning in inflation which remains well below target. This was a welcome distraction from the Russian email collusion scandal and US stocks lifted 1% taking Treasuries while the Canadian central bank lifted rates as expected, which sent the Aussie dollar soaring as a proxy and left other currencies mixed against USD.
Yesterday in mainland China the Shanghai Composite closed down 0.43% after a good start, to be back under previous resistance at 3200 points. The daily trend is still firm as momentum stalls here, but the upside target is quite limited at 3300:
