STATE OF THE MARKETS

Stocks cheered on another stimulus. US equities had another rally on Thursday as Biden’s administration plan another round of stimulus for rebuilding US infrastructure, on top of strong earnings and economic data.  All US index -Dow (+0.71%), Nasdaq (+0.22%) and S&P500 (+0.68%) – except Russel 2000 (-0.38%), were in the green. The benchmark US 10Y bond yielded as high as 1.68%, before settled around 1.64% as New York closed.

Crude remained well bid and closed higher, above $65/bl, as dealers continue to defend the black gold amid better OPEC+ outlook, despite the growing concerns of demand pullback from rising covid cases in India, the world’s third largest oil importer. Rising yields, pushed gold as low as $1,756.40/oz before settled around $1,773.30/oz as New York closed.

In the FX space, the up move in crude sent Loonie to the reign of demand in the short and medium term, while Kiwi dipped in profit taking. Long term investors were seen more cautious as Swiss ousted Kiwi from the helm and King Dollar was on bid in the short term, as markets see rising yields. While Yen was sent to the back burner, Sterling advanced further in demand for the short term. Euro and Aussie were relatively unchanged as sentiments remain bullish for the short and medium term. Long term remains bearish.

OUR PICK – No New Pick

No new pick going into weekend. FOMC decision not to raise rate was expected and markets expectation of rising inflation moving forward, as suggested by better job sector numbers and GDP prints, is valid. These expectation sent lower demand to treasuries, as markets demand better yields, hence the rising yields. Though Dollar broke it’s 91 mark this week, and was hovering around 90.50 as of this writing; the three white soldiers on the monthly is sending a bullish Dollar signals moving forward. Let’s see what more markets has to say. 

Trades updates: MRO was closed out, SIRI was stopped out but we remain bullish, NZD/USD closed out at breakeven and we remain bearish, we remain bullish CRON and NIO has reached TP1,  EUR/GBP remain active and we may close going into weekend, DBX remains active and KHC has reached TP1. Have a wonderful weekend.

Disclaimer:

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.