IIFT Daily Note with Peter Brown

China Growth causes Risk off

Posted by:  |  Time: 8:02 am  |  Topic:
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Slower growth in China caused a sell off last night. This combined with Spain indecision over a bailout have moved us close to the bottom end of the range. Greece Cyprus are also in the headlines for deals. The main issue is when or if Spain will formerly ask for their bailout. Your guess is as good as mine on that one. In the meantime we can expect a reasonably slow Monday. This has been the pattern of late.

If this is the case we should find the bottom quickly and bounce from there.

Support is at 1.2900/20 on the Euro  1440/45 on the S&P and 1756 on Gold.

We may be headed into a bout of range trading. If so we are close to the bottom.

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