By Chris Becker
Wall Street finished early for July 4th holidays and sold off quickly into the shorter session, dragging down the risk complex with it as nerves remain high around the trade war with China. European bourses did well however with a higher than expected PPI, lifting the Euro as the USD slumped against Yen, providing a solid headwind for Japanese stocks in todays session.
Recapping Asia’s poor start to the week yesterday, the Shanghai Composite clawed back a small amount, rising approx. 0.2% to 2779 points, still well below the previous level of support at 2800. Key long term support at 3000 points remains very strong resistance, and while momentum is quite oversold its unlikely any dip filling will get back there soon enough. Failing any substantive interference by Chinese authorities, my downside target remains firm below at 2300:
