STATE OF THE MARKETS
Equities tumbled as markets turned cautious. Global equities tumbled on Thursday as markets turned cautious when strong US employment data stemmed earlier than expected rate hike sentiments. S&P (-0.36%), Dow (-0.07%), FTSE UK (-0.61%), including Nikkei (-0.31%) trending lower, after uptick in US yields boosted Dollar and sent gold lower. Short term US notes 6 months saw a jump of 13% to 0.043% while 1 month yield increased by 102% to 0.01%. The 10Y benchmark yielded higher, above 1.63%, as New York closed.
Crude futures was in a range trading, closed around $68.80/bl, as traders digest the fell in crude supplies yet rise in fuel inventories. US crude supplies dropped by 5.1 million barrels last week, yet petrol and distillates grew by 5.2 million barrels. Gold saw more than 1.9% drop to around $1,865.10/oz after yields seeking investors ran to Dollar amid rising yields.
King Dollar seized the reign of demand in short and medium term accounts, as Kiwi, Aussie, Swiss, Euro and Sterling were sent to the back burner. Demand for Yen was seen elevated, signaling cautious sentiments among short term traders and medium term investors. Long term investors were also seen demanding more Yen than Aussie. NFP Friday might be another sell on the news event.
G8 CURRENCIES SENTIMENTS
** ST refers to Short-Term daily turnover, MT is Medium Term weekly
and LT refers to Long-Term 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 $|
|WKHS||14.77 / 18.00||stock options/call||94.31||2,304.3M|
|GM||63.46 / 65.00||stock options/put||81.06||2,422.9M|
|BB||15.88 / 17.00||stock options/put||72.21||8,523.4M|
|TAL||33.27 / 25.00||stock options/put||60.40||1,040.4M|
|CL||63.10 – 69.00||crude oil futures||1,514||100.9M|
OUR PICK – No New Picks
No new picks going into the weekend. Two things that caught our attention this week other than the ongoing capital outflows from the US equities market. One is the increase in labor costs of 1.7%, above consensus of -0.4%, that comes with strong ADP employment numbers. NFP today will be a witness, whether the weak data last month is just a hiccup or rather a trend of people more comfortable collecting unemployment benefits than going to work or need to be incentivized to go to work.
Second is the falling crude supplies yet rising petrol and distillates consumables. US crude supplies dropped by 5.1 million barrels last week, yet petrol and distillates grew by 5.2 million barrels. This simply means crude that was processed is not being consumed, because there is not much demand for transportation after all. This might just be a hiccup or something alarming for crude bulls. Have a wonderful weekend!
Trades updates: We remain bullish PFE and will continue to accumulate on dip, we look to close MO around $48.50, we remain bullish AUY and will re-entry if stopped, AUD/USD has reached short term TP1, EUR/USD has reached TP1, we remain bullish T and bearish AUD/NZD.
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