STATE OF THE MARKETS
Equities mixed amid uncertainties in Biden’s Plan. Global equities closed the month and quarter on mixed tone Wednesday as Biden’s new infrastructure spending plan sparked some uncertainties in the markets. Though Nasdaq (+1.54%), and S&P500 (+0.36%) climbed higher; Dow (-0.26%) and FTSE UK (-0.86%) edged lower. Nikkei (+0.72%) climbed higher as of Tokyo’s afternoon, after Tankan survey showed Japan’s business mood turned positive in Q1.
Crude continued to be under selling pressure, closed below $56.20/bl, after OPEC+ lowered 2021 demand forecast, amid the renewed lockdowns in Europe and South Asia. On a positive note, gold rebounded higher in the futures markets, above $1713.80/oz, after month end Dollar selling sent the Greenback lower.
King Dollar retreated further in the demand territory, though remain bid in the medium and long term accounts. Euro and Sterling managed to overbid Aussie and Kiwi in the short term, though medium to long term remain relatively unchanged. Long term investors turned less bullish as safe haven Swiss and Yen was more in demand than Aussie and Kiwi. At this point, markets doubt how’s the plan that has failed twice, during Obama and Trump, would survive in Biden’s hands.
G8 CURRENCIES SENTIMENTS
** ST refers to Short-Term which is daily turnover, MT is Medium Term which is weekly
and LT refers to Long-Term which is monthly turnover.
WALL ST MOST ACTIVE
|VOLUME||90 DAYS AVG|
** % Change here refer to price
WALL ST TOP FLOWS
|% CHANGE||FUNDS FLOW $|
** % change here refers to volume
TOP 5 BLOCK ORDERS
|SYMBOL||PRICE/STRIKE||TYPE||VOL/OI||FUNDS FLOW $|
|ZF/B – UB||181.19 – 182.05||US bond futures||5,500||99,955.5M|
|CL||59.60 – 60.90||crude oil futures||2,070||124.6M|
OUR PICK – A Second Revisit to Kroger (KR, NYSE)
Institutional unloading. The past few weeks have seen heavy institutional unloading, as stocks rotation took place; with TME, Viacom, Discovery being among the latest. Defensive Kroger was not excluded, as yesterday the stock took a sudden plunged of more than 4%, after guidance of a lower EPS estimate than consensus, triggered a sell-off in this 90% institutionally owned stocks. Dividends is also lower at current price, around 2% compared to 2.16% when we first revisit this stock in February. (Read more)
After Kroger managed to reach all terms targets; at this point, we see risk of a short to medium term pullback. Long term remains a buy in our view.
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