By Chris Becker
Some stability returned to risk markets overnight with the inevitable bounceback after so much selling, mainly due to the Chinese Yuan finally stabilising, lifting the USD and dragging equities with it. Wall Street lead the rise after European markets remained in the doldrums, while the oil price fell as other commodities struggled to gain traction.
Looking at the action on Asian markets yesterday, where the Shanghai Composite continued its free fall, closing 1.5% lower at 2777 points while the Hang Seng Index eventually fell only 0.7%, recovering somewhat later in the session to be at 25976 points. This keeps it just above the January lows at 25000 points and in an obviously extremely oversold position that still has the potential to overshoot to the September 2018 lows at 23000:
