By Chris Becker
A big reversal in sentiment overnight as stock markets reacted positively to the speculation that the December 15 US/China tariffs may be avoided with a secure trade deal. The USD sold off as a result, alongside bonds, as oil prices also spiked more than 3% as the latest US ISM Services print disappointed.
Looking at the action on Asian markets yesterday where the Shanghai Composite slipped some 0.25%, not helped by the weaker Yuan and closed below the 2900 point level again at 2878 points. The Hang Seng Index fell over 1.2% and confirmed its recent breakdown, closing at 26082 points. While this took out recent daily support and could possibly send the bourse closer to monthly support nearer the 25400 level, the overnight action could be filled in todays session, but watch former support now resistance at 26500 points:
