By Chris Becker
Key takeaway from the Fed Meeting overnight: USD and stocks down, undollar’s up. The USD lost ground against, well nearly everything – from gold to Aussie to Euro – as the FOMC went nearly full dove, cutting the 2019 rate rise expectations from 2 to 0, and thus inflation expectations with it. This is bad for stocks, sending Wall Street down and futures for Asian markets looking dour on the open this morning.
Looking first at the action on the Asian session yesterday, where Chinese stocks fell first with the Hong Kong Hang Seng Index closing 0.5% lower to 29313 points, still above last week’s breakout above 29000 points, but the daily chart was presaging such a reversal as the market got ahead of itself. There’s still substantial support at 29000 points proper so for now, this can be seen as a reversion to mean play only:
