Elsewhere, the Hang Seng Index has made a new one-year high at 20,632, after breaking out of a minor resistance. The major resistance, and the top of a multi-month base appears at 22,688. This index had already broken out by the time China unleashed a not insignificant stimulus package.
The yield curve continues to normalise as the 10-year Treasury yield inches higher, at 3.78% on Sept 26, compared to 3.7% as at Sept 20, and the 2-year Treasury yield stayed stable during the week. The Federal Reserve’s preferred inflation indicator, the Personal Consumption Expenditure (PCE) price index, rose 0.1% for August, and by 2.2% y-o-y, putting inflation almost within the Fed’s target.
