By Chris Becker
This may end up being the most important Trading Week of the year with the looming Brexit, the Mueller report fallout and ongoing concern over a European recession and US inverted yield curve combined with a big blowout in the US budget deficit. Looming bad news everywhere with US stocks plunging on Friday night alongside European concerns due to some very weak preliminary PMI figures, with the IFO survey tonight possibly putting the nail in the coffin for the German powerhouse. Great time for a major trading partner to leave the bloc!
Looking at Chinese stocks first, where last week saw the Shanghai Composite advanced following its pause with a close above the 3100 point level, well above former resistance at 3000 points. The market had ahead of itself with momentum extremely overdone but has doubled down here as talk of stimulus and still good economic prints keeps this near-casino alive: