By Chris Becker
Overnight risk markets took the stimulus ball and ran with it, ignoring the growing COVID-19 virus caseload and deaths, particularly in the heart of the global economic machine, the USA. Quarter and month end rebalancing may also be playing a part, but it seems like another short covering bounce as the economic reality of the crisis has not yet evaporated! Gold and currency markets were relatively stable as USD was largely unchanged, while oil prices slumped on the back of ridiculous Saudi production increases.
Looking at Asian share markets from yesterday, where Chinese stocks were largely acting the same with the Shanghai Composite down just under 1% to 2747 points while the Hang Seng Index was off a bit more, stumbling at the close to finish 1.3% lower at 23175 points, still unable to keep above above its high moving average on the daily chart. This keeps it in swing mode only and while the daily chart is still showing firming support I still contend this will continue to stall here with a flop below the low moving average at 22600 points the uncle point:
