By Chris Becker
Some pretty poor earnings reports took the wind out of the sails of US stocks last night, with Caterpillar hurting from the ongoing US China trade war. Treasury yields fell as a result, with gold and other undollar currencies pushing higher as the USD retreated. I think US markets preferred the government shutdown….oil prices also tumbled, down nearly 3% with a stronger Yen overnight indicated a poor start to risk markets here in Asia this morning as Australian traders get back to their desks.
Looking at the Asian session yesterday first, the Hang Seng Index finished unchanged at 27576 points, unable to build on the big rally on Friday. The daily chart shows how important it is for the market to remain above the previous false break high above 27100-27300 points, so I’m watching for a close below the high daily moving average as a sign this rally has run out of puff:
