By Chris Becker
A relatively quiet night on share markets on both sides of the Atlantic, with modest rises across the board. The slowdown in the Yuan depreciation took some sails out of USD versus the other majors, although Pound Sterling remains in the dumps, Euro and Aussie had a minor fightback. Treasury yields remain stuck just below 3% while oil prices were mixed, with Brent climbing over 1% while WTI was steady.
Recapping Asia’s session yesterday where the Shanghai Composite finally reversed after being in near freefall recently, surging over 2% to close at 2779 points. Momentum was really against Chinese shares weighing down possibly to terminal support at 2600 points (the lowest orange horizontal line) but this bounceback shows how oversold domestic shares are. I don’t expect a lot more upside given the ongoing trade war and the trajectory of the 200 day moving average (light blue line):
