By Chris Becker
The rout is on with European stocks pummeled overnight, dragging US bourses down with them as trade war contagion and emerging markets enter what looks like a bear market. The USD maintained its strength, despite a small respite in Euro selling and the Turkish Lira which is very slowly recovering from its blood of bath. Commodities were the hardest hit with oil and gold prices falling nearly 2% each. It’s going to be a sellers day here in Asia, so get out your short shorts!
Recapping Asia’s session yesterday with Chinese stocks first, the Shanghai Composite closed 2% lower at 2723 points, completely wiping out any positive sentiment that has been forming previously, with previous support at 2800 confirming as staunch overhead resistance. Momentum remains negative with only a potential bottom at the 2700 point level that has been respected so far:
