By Chris Becker
The Fed has surprised and spooked markets by announcing an out of cycle rate cut, sending confidence down alongside bond yields, the USD and Wall Street. Nerves are frayed with US stocks closing nearly 3% lower and sending Asian futures down with them. Gold stacked on big gains however, rallying over $50USD per ounce while oil prices fell over 3%
Looking at Asian share markets from yesterday where the Shanghai Composite tried to get back above 3000 points, closing some 0.7% higher to 2997 points while the Hang Seng Index put in a scratch session to close a smidge lower at 26284 points, gapping higher on the open but unable to hold on to these gains. This bounce has almost no life in it with momentum still clearly against he market, still requiring a follow through above the low moving average level at 26400 points at least:
