By Chris Becker
Some calm returned to risk markets overnight, but its all relative, with oil shooting 20% higher on shutdown rumors from an already overly depressed level. Stocks did well in Europe and stumbled a little higher on Wall Street while in currency world, its still all about the King, as gold slumped to a new monthly low alongside Euro, Pound Sterling and the commodity proxies although Aussie had a little (sic) blip higher on the RBA move yesterday.
Looking at Asian share markets yesterday, where the Shanghai Composite was off by nearly 100 points before the lunch break but then recovered a little at the close to finish 1% lower to 2702 points. The Hang Seng Index fell much sharper, down 2.7% to 21709 points with the daily chart showing no bottom in sight. The daily chart remains overextended and at a juncture here at the monthly trendline from the 2008 bottom:
