By Chris Becker
US stock markets returned from their long weekend and went on the defensive straight away, absorbing the Apple guidance cut with some mild falls on Wall Street after European bourses fell in response to a rout in Asia. The USD is up against all the majors – save gold which has zoomed away above the $1600 mark – with some Yen selling but probably not enough to buoy spirits on Japanese markets today. Commodities were mixed with Brent rising, but WTI stumbling, while a fall in iron ore prices and the latest RBA minutes is sending the Aussie dollar to the doldrums.
Looking at Asian share markets yesterday where the Shanghai Composite stumbled around after its long lunch break, finishing with a scratch session at 2984 points while the Hang Seng Index dropped sharply lower by 1.5% to 27530 points taking back all of the previous weeks gains. As I’ve been stating, the recent uptrend required a break through firm resistance at the 28000 point level, as momentum was not yet positive. Watch for price to break below the low moving average to call this swing move over:
