By Chris Becker
Risk markets have extended their rally overnight as the USD wanes against the undollar majors, although gold remains stalled, Pound Sterling made a weekly high on the back of another failed Brexit vote. The European wide services PMI print was not as disappointing as expected, although the US ISM version hit an 18 month low, its still expanding with employment prospects still high.
Looking first at the Asian session yesterday, where Chinese stocks advanced again with the Shanghai Composite remaining above 3200 points, while the Hong Kong Hang Seng Index is inching up to the 30000 point level, up 1.1% to 29943 points. This pushes it well above the previous high as momentum gets into a more extreme overbought position, where we might see a small dip here on mean reversion:
