By Chris Becker
Fear is gripping stock markets with another major rout overnight in Europe especially, but then followed through on Wall Street. Across the board, stocks lost between 3-5% with a repeat likely here in Asia on the open today. The USD continued to fall against the majors, Euro in particular as the Aussie dollar rose about half a cent, still below the 66 handle, while 10 year Treasury yields dropped to their lowest ever at 1.28%. It’s all about running for safety, and where the terminus is here is extremely hard to discern, but I’ve used some weekly charts for today’s report to put things into perspective.
Looking at Asian share markets yesterday where Chinese stocks were able to stave off most of the selling as the Shanghai Composite closed only 0.1% higher at 2911 points as it remains below the 3000 point barrier. Meanwhile the Hang Seng Index finished 0.3% higher at 26778 points after a tight session. Price action is looking towards a return to the January and December lows at below 26000 points as momentum remains quite negative as price action is not yet indicating any sort of bounce:
