By Chris Becker
Markets absorbed the news of Janet Yellen’s resignation overnight, somewhat because its just procedural as Trump’s nominee Jerome Powell will take over at the end of her tenure – but in the main because its likely her replacement will effect the same type of monetary policy. A small rebound in US stocks was overshadowed by the USD spiking higher in anticipation of the Fed minutes release tomorrow and the Euro slumping as the talks around forming a new German government again failed to gain traction.
Recapping Asia yesterday first where in mainland China the Shanghai Composite sold off straight from the open and hasn’t looked back, still retreating well below 3400 points, down 0.8% to 3355 as sentiment goes negative. Support at 3400 is slowly turning into resistance here with the daily uptrend broken and the 200 day moving average or 3300 the next natural level of support to come under pressure:
