STATE OF THE MARKETS
Dollar surged as debt ceiling looms. US stocks closed mixed on Wednesday, with Dow (+0.26%) and S&P (+0.16%) pared earlier losses while Nasdaq (-0.24%) and Russell (-0.20%) edged lower as the House battled in finding the stopgap to the debt ceiling that will expire Thursday. Fed’s Powell testimony didn’t help calm the markets while investors ran to the Dollar as the 10Y yields revolved around 151 basis points – the highest in 3 months. Dollar index surged past 94 handle and on the way to 90.50 at writing.
In the commodities market, Dollar demand and strength on yields continue to weigh on both crude and gold as investors rotate from cyclical to defensive sectors. Crude settled below $74.70/bl while gold below $1,723.00/oz as New York closed. Elsewhere, iron ore was flagging $120/tn for October settlement – 5% higher as markets await the infrastructure bill to pass.
In the FX space, Yen was seen advancing in demand while Euro was sent to offers in the short term accounts as traders prepared for the worst. Long term investors, however, flipped Euro to demand while sending Kiwi to the back burner as European equities looked poised for long term upside. Markets expect better US GDP (6.7% vs 6.6%) and unemployment claims (340k vs 351k) on Thursday.
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 $|
|6L||0.18205 – 0.18340||FX futures/BRLUSD||3,220||46.8M|
|ZF/N/B – TN||122.2325 – 159.0000||US bond futures||20,096||279,844.2M|
|CL||74.36 – 75.10||crude oil futures||425||31.7M|
OUR PICK – No New FX/commodities Pick
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