By Chris Becker
The ECB and BOE held fire overnight, but the interesting catalyst was the US CPI print for August, which came in lower than expected. This set the USD selling off against everything except Yen with buying support shifting back to equities again with a solid gain on Wall Street. Treasury yields fell as a result, after wanting to break through the 3% level earlier in the week while commodities sold off, particularly oil prices.
Recapping Asia’s session yesterday with Chinese stocks first, where the Shanghai Composite has reversed course, finally putting in a positive session, closing 1% higher at 2683 points. Momentum however still remains negative as Chinese shares continue to follow the Yuan down with all eyes on terminal support at just above 2600 points:
