STATE OF THE MARKETS
Yields fall as safe haven flows. Major US stocks indexes closed mixed on Thursday, with Dow (+0.20%) in the green, while S&P (-0.30%) and Nasdaq (-0.70%) closed lower; after unemployment claims came out as expected and investors flock to bonds safety, benefitting the Greenback. The 10Y maturity continued to yield down from 1.35% to 1.30% as New York closed.
In the commodities market, crude futures edged lower, closed at $71.65/bl, after reports showed rising demand concern and OPEC+ still in limbo on production quota. Gold edged higher, closing above the $1,825/oz mark, as some investors do not see Feds ability to raise rates anytime soon, given the size of the balance sheets and debt ceiling limit at the end of this month.
In the FX space, long term investors remained cautious as demand for Swiss and Yen remained elevated, in continued hedging with higher yielding Kiwi and Dollar. Safe haven flows continue to dominate demand across the board as Yen strength continues. Crude weakness sent Loonie on offers across all horizons, supporting mainly Euro and Sterling. Markets look forward to seeing the RBA and ECB meeting next week to decide the next path for Aussie and Euro.
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 $|
|CCL||21.95 / 22.00||stock options/call||80.13||949.0M|
|UAA||20.08 / 20.00||stock options/call||73.87||106.7M|
|LYV||79.93 / 82.50||stock options/call||59.08||154.7M|
|ZN – T||110.0713 – 133.2450||US bond futures||28,698||356,733.5M|
|CL||54.00 – 72.83||crude oil futures||6,321||444.2M|
OUR PICK – No New Pick
No new picks going into the weekend. We continue to see this week, ending 7/7, that long term US investors continue to cash out ($3.08b) from domestic markets and send over $0.66b to foreign equities. More than $30.7b flowed out of short term money markets while close to $4.8b flowed into taxable bond funds. More cash is coming out as markets prepare for the debt ceiling by the end of this month.
Trades updates: We will continue to accumulate AUY as the stock now pays dividends yielding 2.41% at current price, we remain bullish T and will accumulate as dividends yields now at 7.32%, we remain bullish CLVS, VIPS and COG, while short GPRO and APA, XAG/USD and EUR/USD longs remain active, USD/CAD was stopped out and bearish GE.
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This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities. Opinions expressed are of the authors and not necessarily of MFM Securities Limited or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.