By Chris Becker
It was all about the Fed overnight where at their July meeting, a 25 bps “insurance cut” rattled markets instead, with US stocks losing more than 1% and sending the USD higher against everything. Treasury yields jumped across the curve while Australian interest rates fell, with the 10 year government bond now at a record low. Commodities like oil and iron ore also sold off in response. It’s going to be a sour day here in Asia.
Looking at the action on Asian markets yesterday, Chinese stocks were the worst, with the Shanghai Composite falling 0.7% to be at 2932 points while the Hang Seng Index buckled under internal pressure with another new daily low, losing 1.3% to finish at 27777 points. This puts it right on ATR daily support and ready to breakdown to a new monthly low:
