By Chris Becker
Given the US holiday overnight, it was a case of trepidation and consolidation on risk markets, with the USD shifting around against the major currencies, with gold and Euro falling and Yen firming. Stocks are slowly moving into a very weak October with European stocks off due to Italian budgetary imbroglios and Brexit brouhahas. Bond markets were relatively quiet and today in Asia the economic calendar is quiet.
Recapping Asia’s session yesterday where the Shanghai Composite finally reopened after a week long holiday and caught up with the risk game by gapping nearly 3% lower, staying there and then some as it closed 3.7% lower to 2716 points. Looking at the weekly chart, this takes it back previous weekly support, so there maybe more downside potential here:
