By Chris Becker
The Fed has spiked the punch bowl with Chairman Powell seeming to backtrack the faster pace of normalisation of interest rates in a speech overnight. Treasury yields and the USD dropped in response and set a fire under equities with US markets closing nearly 2% higher across the board. The 3Q GDP print in the US was on target but new home sales fell larger than expected, while the BOE released its report into the mess that is Brexit.
Recapping Asia’s session yesterday where the Shanghai Composite finished 1% higher to 2601 points, finally getting back above previous key support at the 2600 point level. The daily chart is starting to show some life here, but price must maintain itself above 2600 this week if there’s any chance of a longer term recovery:
