By Chris Becker
Volatility returns as US stocks selloff in the wake of the Republican defeat in Alabama, with increased pressure internally on the GOP tax bill taking away the punch bowl just as the Fed raises rates. The ECB and BOE (and Swiss) had their interest rate meetings overnight as well with Mario Draghi still cautious about taking the foot off the monetary policy easy pedal. Euro fell but other currencies were relatively stable overnight.
Recapping action in Asia yesterday where in mainland China the Shanghai Composite fell after the lunch break following a surprise interest rate hike by the PBOC, down 0.3% to be at 3290 points, reversing most of the previous gains. There continues to be a shakeout here around the 3000 point level, but I’m watching the previous session lows just below 3300 as the key support level going forward:
