I'm not going to keep up a running commentary on the moves, but did want to note that after opening strongly the Shanghai Composite has now dipped into negative territory
- The Nikkei is weakening a little also
- And that's taken the swagger out of USD/JPY now too.
- AUD and NZD are off from their highs, the NZD more so
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The thing with the Chinese stock markets is there is now a huge over hang of supply. On the big falls a lot of sellers just couldn't sell, because shares were suspended from trading. Its not as if they said, "Oh the price is too low, I won't sell" ... it was literally, they were not able to sell.
That is not a confidence enhancing development, hence there are sellers on rallies now so the risk is skewed to rallies running out of puff.
