By Chris Becker
The successful Singapore summit raised expectations of a return to risk overnight, but European markets instead reacted against a very poor ZEW Survey in Germany as a stronger than expected US CPI print for May also took the wind out of US stocks. With the Fed meeting later tonight, the possibility of another rate rise is on the cards, which is helping USD versus the majors, particularly Aussie dollar.
Recapping stocks in Asia yesterday first where the Shanghai Composite had a great session, lifting nearly 0.8% to close at 3078 points, ready to tackle short term overhead resistance at 3100 points. The daily chart is still clear here though , with the 200 day moving average (light blue line) providing solid resistance on a continuation of a series of lower highs whenever it rallies since the start of the year:
