Archived IMT (2009.07.29)

Nikkei may have closed higehr today but China is down significantly. Shanghai Composite Index is down 5%, potentially showing the biggest weekly decline in 5 months, testing below the 3,200 level before bouncing to 3,266. Bombay -1.95%, Moscow -0.5% so lets see what the Brazil part of the BRIC does today. We reiterate that the extent of any impact from falling equities onto USD and JPY depends on the rate of the selloff in emerging markets, which occupy the bulk of risk cash (usually denominated in USD in times of repatriation). USDCAD eyes a rest of 1.09, as oil is dragged towards its 55-day MA of 65.57, eyeing 64--38% retracement of the decline from the 73.44 high.