Wall Street was able to bounce back as tech stocks lead the way despite risk contagion from Chinese equities in the Asian session yesterday while European markets saw a very mild lift lead by German stocks in the absence of any economic news or catalysts. The USD finally ceded some ground to the majors with Euro still struggling to get back above the 1.09 cent level as Pound Sterling lifted while the Australian dollar at least didn’t go backwards again.
US bond markets again saw a big lift across the yield curve despite the slightly weaker USD in anticipation of this week’s Jackson Hole conference with the 10 year Treasury through the 4.4% level at a 16 year high. Meanwhile oil prices moderated slightly with Brent crude pulling back slightly to remain below the $85USD per barrel level. Gold managed a positive session for a change with a small blip higher to the $1895USD per ounce level, still well off its recent highs.
Looking at share markets in Asia from yesterday’s session with mainland Chinese share markets sold off into the close with the Shanghai Composite down more than 1% at 3092 points while in Hong Kong the Hang Seng Index has lost another 2% to finish at 17623 points.
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