By Chris Becker
Risk markets remained cautious overnight in response to the ongoing US/Iranian tensions with European stocks dropping before a late rally on Wall Street saw Treasury yields rise as the mood improved. Gold held on to its big breakout while oil prices moderated only slightly. The USD rose against Yen in the risk-on mood, but fell back against the other majors during an empty economic calendar.
Looking at Asian share markets yesterday where the Shanghai Composite slowly melted higher before the lunch break, then slipped and fell into the close, down 0.3% to 3073 points, still well above the previously long held 3000 point resistance level. Meanwhile the Hang Seng Index also slipped 0.5% to 28305 points, getting back to a more sustainable trendline after late last week’s exuberance. The daily chart shows price action getting back below the high moving average for a breather, but watch momentum if it crosses below the key 100 level for signs of a retracement:
