By Chris Becker
A modicum of stability arrived on equity markets overnight, but commodities – particularly oil – remain depressed, as bond yields continue to fall. The USD Index is up slightly having arresting some of the recent declines, but the big move overnight was a new low in the Australian dollar, hitting 2009 levels. Today’s action in Asia is likely to be muted and cautious to say the least.
Looking at Asian share markets yesterday where the Shanghai Composite was looking good going into the close after its long lunch break but then solidly sold off as fear set in, closing 0.8% lower and crossing below the 3000 point barrier to 2987 points. Meanwhile the Hang Seng Index was off by 0.7% to 26696 points after a big gap down at the open. Price action is looking towards a return to the January and December lows at below 26000 points as momentum remains quite negative, but there is the possibility of a spike here:
