By Chris Becker
The possible revocation of the Fed put combined with the Iranian seizing of a British tanker saw risk sentiment reverse again on Wall Street following a positive close here in Asia. The amount of easing priced in at the July Fed meeting has dropped to an average of only 30 basis points while Treasury yields and the USD gained in the confusion over the NY Fed’s comments previously. Oil prices pushed higher after the close and are likely to continue their ascent this week as the tensions rise in the Gulf.
Looking at the action in Asia on Friday first, where the Shanghai Composite finally put in a solid session and closed 0.8% higher at 2924 points while the Hang Seng Index was even more positive with a 1% plus finish to 28765 points. This puts the bourse back above its previous set of highs at 28500, confirming the bullishness on the daily chart however this may be overshadowed by the Wall Street falls, so I’m watching the low moving average level at 28300 to come under pressure today:
