By Chris Becker
Risk markets are getting nervous about the Chinese virus outbreak which sent Wall Street lower overnight while gnashing of teeth in Davos at the World Economic Forum did nothing to persuade further selloffs. The latest German ZEW survey surprised on the upside, giving the Euro a temporary boost before reversing completely on the problematic trade deals between US and France, while other currencies were relatively contained, although Yen continues to firm.
Looking at Asian share markets yesterday where Chinese stocks have suffered the most from the viral scare, understandably, with the Shanghai Composite falling nearly 1.5% going into the close to sharply retrace below the 3100 points level to 3052 points. Meanwhile the Hang Seng Index has sold off even further, following through on the previous bearish engulfing candle, closing nearly 3% lower to 27985 points. This takes it back almost to trailing ATR support which needs to hold here in the short term:
