By Chris Becker
Another volatile night on markets with European stocks leading a bounceback that then faltered before crashing on Wall Street with a very late “Hail Mary” recovery in the last hour of trading. Currency markets were not as crazy but the USD is reasserting itself against all the majors, a small bounce on Chancellor Merkel’s retirement news. The catalyst for the selloff was the potential blowback on the upcoming Trump-Xi talks with the US possibly putting tariffs on ALL Chinese imports. Winning!
Recapping Asia’s session yesterday where the Shanghai Composite was the worst performer, closing 2.2% lower at 2542 points, pushed back below key support at the 2600 level once more. The daily chart shows how clearly that in the short term it needs to get back and remain above that level to forestall a wider selloff:
