By Chris Becker
Fear is gripping equity and risk markets with nothing but selling overnight although to put in context, the bubblish S&P500 is now only back to its December 2019 high! Context is not traded on markets however, with the USD sold off again boosting Euro and hurting continental stocks, with Treasury yields also dropping as the 10 year hits 1.31% – the lowest in sixty years….Gold finally capitulated on profit taking while oil and iron ore prices dropped.
Looking at Asian share markets yesterday where the Shanghai Composite fell nearly 2% mid session before recovering to close only 0.6% lower and just keeping above the 3000 point barrier. Meanwhile the Hang Seng Index was the best in the region, eventually closing 0.2% higher to 26893 points as selling exhaustion set in. Futures are indicating further falls today however, with daily momentum still unable to crossover to a positive reading with a return to the January and December lows at below 26000 points almost inevitable:
