By Chris Becker
After a mixed session in Asia yesterday, overnight markets rallied on the back of strong US economic data, pushing the USD higher against everything while a selloff in US Treasuries sent a clear risk-on signal. The 10 year yield spike 10 points to 3.17%, its highest in over 7 years, while the Aussie dollar collapsed as traders dial in another rate rise by the Fed in December as the RBA treads water. Oil prices again moved higher with Brent and WTI both up 2% while other base metals and commodities – apart from gold – also lifted higher despite the stronger USD.
Recapping Asia’s session yesterday where the Shanghai Composite was closed again. The market finished Friday above 2800 points, building confidence as the stability in Yuan continues. Momentum is now firmly positive, suggesting this bounce could get to 2900 points swiftly, but the fall in the Hang Seng yesterday is likely to be repeated on the open today:
