By Chris Becker
Two catalysts overnight that would normally be positive couldn’t turn around the risk off mood with US stocks stalling after European markets jumped near the close as a Brexit deal was hatched out. A new round of talks between the US and China on trade is supposed to be optimistic, but it turned the USD down against almost all the majors, with Pound Sterling unsurprisingly jumping on the Brexit news. Oil prices continued to slump, putting egg on the Saudi’s faces, now at a one year low.
Recapping Asia’s session yesterday where the Shanghai Composite has closed 1 % higher to 2654 points, building on its recent move above key support at the 2600 level. The daily chart shows the potential of a slowdown in this long standing correction, but price must maintain itself above 2600 here to translate that into a recovery rally:
