By Chris Becker
Oil prices finally bounced, with tech stocks on Wall Street also surging as US Treasury yields spiked in the wake of a return to confidence following the retail orgy over the weekend. Risk was focused in Europe with Mario Draghi again apprehensive of the moderation in recent economic data, while concerns over Brexit and the Italian budget are weighing on currency markets as the Euro and Pound Sterling move lower.
Recapping Asia’s session yesterday where the Shanghai Composite closed down 0.2% to 2575 points, struggling to start the week and to get back above key support at the 2600 point level. The daily chart showed the potential of a slowdown in this long standing correction, but price must maintain itself above 2600 this week if there’s any chance of a longer term recovery: