By Chris Becker
Here comes the bounce with tech stocks leading the charge on Wall Street, exhausted selling on equity markets has turned into frantic short covering with big moves overnight. Despite the good mood, Treasury yields continue to lift higher while the USD advanced against traditional safe havens, the Aussie and Kiwi remain surprisingly high. Economic data was mixed, with internal employment info from the US still strong, while German sentiment broke to a new low according to the closely watched ZEW survey. No important releases locally today.
Recapping Asia’s session yesterday where the Shanghai Composite was struggling after the lunch break after being steady most of the session but finally closed down 0.8% at 2546 points, key support at the 2600 level a distant memory. The daily chart still looks like part of a staged breakdown to the 2300 terminal support area, although momentum is seriously overcooked to the downside, so there could be a quick but short lived reversal on the back of last nights bounce:
