Over the last 48 hours the outlook for risk has improved somewhat as the US equity market rebounded off its recent low. Renewed selling of USD Asia hints at returning investor confidence; however, we believe it is still too early to become optimistic that the worst is over. The case for a sustainable recovery is still far from compelling and we suspect trading will remain choppy this week. A series of bullish flag breaks are needed by the S&P500, SEK, SGD and KRW before the risk outlook improves.
BARCLAYS CAPITAL
TECHNICAL RESEARCH