Last night saw US stocks breakdown at the end of the session as the debt ceiling shenigans in Congress ended in deadlock again. This came after the USD lifted again with all the major currencies under heel, including the Australian dollar as it was pushed to the mid 66 cent level. European stocks fell back slightly with futures again indicating that Asian markets may bring the hesitation as well.
Meanwhile 10 year US Treasury yields rose appreciably, up through the 3.5% level to a start of month high while oil prices were steady as Brent crude hovered around the $75USD per barrel level. Gold fell back sharply however, breaking down below the $2000USD per ounce level in an ominous move.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets sold off slightly going into the close, with the Shanghai Composite down nearly 0.7% at 3290 points while the Hang Seng floated along with a scratch session to still stay shy of the 20000 point level.
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