By Chris Becker
Risk sentiment is now in a very poor place with further falls on both sides of the Atlantic overnight, the S&P500 critically falling below the key 2800 point support level as European stocks reacted negatively to the uptick in German unemployment. The USD was stronger against most of the majors, although the Aussie dollar remains resilient.
Yesterday saw Asian stock markets respond in kind to Wall Street’s poor mode although the Shanghai Composite was the only standout, up slightly to 2914 points, while the Hang Seng Index closed 0.5% lower to 27235 points, wiping out the very brief uptick to start the week. The daily chart still shows a deceleration pattern with a bottom potentially forming here at the 27000 point level but sentiment and momentum is way against it:
