By Chris Becker
The US Federal Reserve cut interest rates as expected overnight at the FOMC meeting, but the response has been mixed across risk markets. The USD rose significantly against the majors, although gold was spared, with Treasury yields jumping across the curve. Stock markets were less fussed, with scratch sessions dominating across both sides of the Atlantic. It looks like a minor reaction here in Asia this morning on the carry through.
Looking at the action on Asian markets yesterday, where the Shanghai Composite came back from its previous slump to finish nearly 0.3% higher at 2985 points, but still below the 3000 point barrier that had recently turned into support, now resistance. The Hang Seng Index fell back, falling 0.2% to 26754 points, also remaining below weak support/former resistance at 27000 points. Momentum is flatlining but just positive, so I’m watching the lowmoving average to come under further pressure here on the daily chart and another dip to develop:
