By Chris Becker
A week after a very strong non-farm payroll (NFP) report that then solidified the Federal Reserve’s intentions at the subsequent FOMC meeting to normalise rates has seen some semlbance of stability on equity markets, although Friday night saw a small tumble. The USD is back in town as all the majors correct in their futile rebound rallies although the Antipodean currencies are holding up well with the Aussie dollar trying to breakfree from its year long correction.
Looking at Chinese stocks first, last week saw the Shanghai Composite failure to bounce back after finding of a bottom below what was terminal support at the 2600 point level, finishing at just below that level. This takes all the momentum out of this swing, with the high moving average on the weekly chart never under threat, so we’re likely to see at best a sideways shuffle this week:
