STATE OF THE MARKETS Stocks rebound further as fear subsides. US stocks continue to rebound on Monday after another sell-off on Friday as fear on Omicron variant eased and rising inflation concerns might delay Fed’s tapering. Dow (+1.87%), Nasdaq (+0.93%), and S&P (+1.17%) including Russell (+2.05%) rebounded further as yields and Dollar ticked higher. The 10Y benchmark reclaimed the 1.45% as the Dollar (DXY) edged up to 96.30 mark.
In the commodities market, crude continues to advance past $71/bl after reports showed that global lockdowns are less likely as Omicron is mild. Buyers continue to defend gold at $1,780/oz ahead of US CPI reading this Friday. Elsewhere iron ore continued its upward trajectory, settling at $103.70/tn as markets expect the US infrastructure project to start in 2022.
In the FX space, Aussie flipped to demand with Sterling, Yen and Dollar in the short term accounts as risk sentiments improved. Medium term traders turned more bearish as the Swiss took the lead in demand from Yen. Long term sentiments were little changed. On Tuesday, markets look for earnings reports from AutoZone (AZO), SentinelOne (S), Toll Brothers (TOL), Renesola (SOL) and Casey’s (CASY) as well as the latest US productivity and costs.
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||TYPE||R/VOL||FUNDS FLOW $|
|PJ||149.94 – 150.08||FX futures/GBPJPY||152||20.1M|
|ZF||121.08||US bonds futures||6.0K||72,648.0M|
|CL||67.70 – 70.04||crude oil futures||3.3K||227.5M|
OUR PICK – GBP/JPY Riding the block orders. $20 million worth of block orders were noted for the Guppy in the futures market around the ¥150 handle that we intend to ride with, though BoE was a little iffy on the potential of a rate hike this month. We see short to medium term rebound as speculators turned optimist.
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