By Chris Becker
Stocks lifted overnight on hopes that trade talks between China and the US will be fruitful, with tech stocks the only casualty. The reversal in USD strength continues to play out with all the majors and gold in particular rebounded after a long period of weakness in reaction to Trump’s Trade War. Commodity prices were even more positive, particularly iron ore and oil.
Recapping Asia’s session yesterday with Chinese stocks first, where the Shanghai Composite started the week with a positive session, with a big surge near the close to finish up 1% to 2698 points, just below what was tentative support until last week’s rout at the 2700 point level. Momentum remains very negative here so oversold conditions are ripe for a bounceback, watch the USDCNH chart for the continued inverse correlation:
