By Chris Becker
Quite a mixed night on overseas risk markets with European bourses slipping into the red while Wall Street is just holding on as tech stocks sell off slightly amid worse than expected corporate results. Bond yields have fallen across the curve but also across all sovereign releases with the Australian dollar the strongest currency as Euro and Swiss Franc fall off the boil and Pound Sterling has another night of high volatility as a new UK election looms.
Looking at the action on Asian markets yesterday, where the Shanghai Composite pulled back all of its previous gains to close nearly 0.9% lower at 2954 points, as the 3000 point level remains a staunch barrier to break through. In Hong Kong, the Hang Seng Index has also proven unsteady with a pullback of 0.4% to close at 26779 points, remaining just above the weekly downtrend line. This doesn’t close out the recent breakout with support and momentum still supporting a short term move, but watch the low moving average at around 26500 points for signs of an inversion:
