By Chris Becker
The positive mood is quickening with overnight markets reacting to the upside on US-China trade talks with US Treasury yields hitting a one month high. The firing of NSA John Bolton saw oil price drop, plus talk of easing of sanctions on Iran, while US PPI inflation figures were upbeat, lifting USD against the majors. Tonight’s ECB meeting will be very closely watched!
Looking at the action on Asian markets yesterday, where the Shanghai Composite was the exception to the bullish mood, falling 0.4% to close just over 3000 points while the Hang Seng Index had a strong rally to close 1.8% higher at 27159 points, casting off any ideas of pausing from its well overbought status. Price has tentatively broken through above trailing ATR resistance at the 27000 point level with momentum now clearly positive – can it be sustained?
