By Chris Becker
Last night saw stock markets surge, particularly on Wall Street as oil prices continued higher while the USD firmed against almost everything, including gold which slumped to a new five month low. A rally on US Treasuries was unexpected, while Fed Futures are also implying a higher chance of a rate cut in December. Locally we get the Aussie CPI print for the quarter that could see the Australian dollar fall even further as it broke through 71 cents overnight.
Looking first at the Asian session yesterday where the Shanghai Composite closed 0.5% lower as confidence disappears down to 3198 points, while the Hang Seng Index remained below the 30,000 point level, losing 0.1% to be at 29963 and very weak. Futures look a bit brighter however, but I’m watching both the daily low moving average line which is playing short term support and resistance overhead for a possible breakout:
