STATE OF THE MARKETS
Dollar buoyed as sentiments plunged. Global equities plummeted on Monday after concerns over rising spreads of delta covid variants forced long term investors to continue taking profits off the table. Major indexes in the likes of Dow (-2.09%), S&P (-1.59%), FTSE (-2.34%) and Nikkei (-0.32%) plunged deep in the red as investors ran to safe haven Dollar for capital safety. More than $290 billion worth of block orders in US bonds hit the futures exchange as the 10Y benchmark yielded below 1.20% – the lowest in five months.
In the commodities market, crude futures dived below $65/bl, as investors saw demand might not recover as expected after OPEC+ decided to boost production despite rising covid cases globally. Gold dived to $1,795/oz briefly before bidders emerged and settled higher around $1,811/oz amid concerns that Feds might not be able to raise rate as covid cases continue to climb.
Flight to safety saw Yen seized the helm of demand across all horizons in FX markets, with Swiss and Dollar following the lead, while the comdolls were sent to the back burners. Risk off was obvious as more funds flowed into Europe than the UK, sending EUR/GBP rate to the highest in six weeks as fear and greed index hit the lowest in 12 months.
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||19.72 / 20.00||stock options/call||104.51||1,669.9M|
|MGM||36.63 / 37.50||stock options/put||91.57||370.3M|
|AAL||18.97 / 17.00||stock options/put||68.80||1,211.4M|
|ZF-B/UB||124.0150 – 201.1900||US bond futures||18,503||295,743.7M|
|CL||62.50 – 68.93||crude oil futures||12,633||837.6M|
OUR PICK – AUD/CAD
Turn around in long term sentiments. AUD/CAD was bearish for a while until last Thursday. Friday and Monday indicated a turn around in long term sentiments that also synchronized with medium and short term. The bottom is most likely in place for AUD/CAD.
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