By Chris Becker
Beyond the growing trade war with Chimerica, a banking crisis in Turkey on Friday night capped off a volatile week on global markets, with the USD re-asserting itself as the safe haven of choice. The Fed looks hell bent on normalising interest rates, with Friday night’s CPI print coming in bang on target at just under 3% for July. European stocks finished significantly lower on the run in bank stocks while the Euro made a new weekly low, taking down the Aussie with it. Staying locally, the change in language from the RBNZ saw the Kiwi trip up against, well everything, but also gave increased weakness to the Australian dollar, which is looking ready to match its 2016 lows closer to 70 cents.
Looking at Chinese stocks first, the Shanghai Composite finished the week stronger after a bad start but failed to gain any traction given the previous week’s quite bearish performance, unable to finish abvoe 2800 points. Momentum remains oversold but overall acting properly like a bear market, so we’re likely to see new lows in the week ahead if support at 2700 points is breached:
