By Chris Becker
A very busy night on risk markets with a much higher than expected CPI print taking the bottom out of European stocks who were expecting the easy ECB to keep things inflated, while a booming US consumer also highlighted the risk of a less dovish Fed going into tonights FOMC meeting as Wall Street stumbled. Gold rose but other undollars are under pressure, with Pound Sterling getting Johnsoned once again while the Aussie dollar is hell bent on reaching new yearly lows.
Looking at the action on Asian markets yesterday, where the Shanghai Composite came back stronger, closing nearly 0.4% higher to 2952 points while the Hang Seng Index staved off another new daily low, climbing just 0.2% to finish at 28146 points. This puts it somewhere near but not above the recent support level as this market teeters for another breakdown. I’m still watching ATR support at the 27700 level for signs of a capitulation:
