STATE OF THE MARKETS
Stocks surged higher as the Dollar firm. US stocks surged higher on Wednesday after a series of solid earnings from PayPal (PYPL), Lam Research (LRCX), Starbucks (SBUX) and AutoHome (ATHM) brought back buyers into bidding as the Dollar firm near the 106.50 minor handle. Nasdaq (+2.59%) jumped the most, followed by S&P (+1.56%), Russell (+1.41%) and Dow (+1.29%) as the 10Y benchmark was sold off, sending yields higher to 2.85% before bidders emerged to force yields back to 2.70%.
In the commodity markets, global growth concerns and firm Dollar continue to weigh on crude that fell lower and settled below $90.40/bl as New York closed. Tensions in South East Asia saw gold bid higher and continue to climb past $1780/oz in early Thursday trading. Elsewhere, iron ore fell back to $110.10/tn as buyers fizzled amid demand concerns.
In the FX space, overall sentiments mixed as demand for high beta Kiwi, Aussie and Loonie were elevated despite the reign of Yen in the medium and long term accounts. Short term traders continue to sell Yen, Swiss and Dollar while buying Kiwi, Aussie and Loonie.
On Thursday, markets expect to scoop further bargains as more earnings reports come in from Eli Lilly (LLY), Alibaba (BABA), Amgen (AMGN), ConocoPhillips (COP), Cigna (CI), Duke Energy (DUK), Zoetis (ZTS), Vertex Pharma (VRTX) and Block (SQ) as well as the latest US jobless claims and the trade balance.
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 refers to price vs previous day price
WALL ST TOP FLOWS
|% CHANGE||FUNDS FLOW $|
** % change here refers to volume vs. 20 days average volume.
TOP 5 BLOCK ORDERS
OUR PICK – AUD/JPY
Medium term under pressure with long term upside capped. Sentiments model showed upside remained capped while medium term continue to be under pressure. The sell-off in the London session signaled a resumption of Yen buying as markets weary of the US-China tension amid Taiwan visit by the US house speaker Pelosi. We see the risk of another drop to the downside.
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