By Chris Becker
Stocks are riding the waves of transPacific press releases and editorials as positive news surrounding the US/China trade deal is sending USD higher and lifting all risk assets. The EuroStoxx 60 hit a six year high as Brexit concerns have evaporated, while gold has broken through multiple support levels losing more than $20USD per ounce and Treasury yields are spiking on risk rotation out of bonds.
Looking at the action on Asian markets yesterday, where the Shanghai Composite eked out a minor scratch session, closing a couple points higher but remaining below the key 3000 point resistance level. Meanwhile the Hang Seng Index slipped late in the session before rallying at the close to finish 0.5% higher at 27847 points where its looking very toppy here on the daily chart after only recently clearing the 27000 point level. The trend is very strong here, but maybe not sustainable as momentum builds to even more overbought levels:
