STATE OF THE MARKETS

Stocks slides as bulls exhausted. Major US stocks indexes slid on Wednesday as investors turned cautious and took some profits off the table, despite strong earnings and guidance. Dow (-0.74%) and S&P (-0.51%) closed in the red, while Nasdaq was unchanged as flight to safety was evident in falling yields. The 10Y benchmark dropped sharply to 1.55% as Dollar (DXY) flirted with the 93.80 mark.

In the commodities market, crude dropped further to as low as $80.67/bl in Asian trading Thursday after an EIA report showed an increase in inventories of more than 4.3m barrels last week. Gold was back on bids and piercing the $1,800 handle at writing as inflation remains a concern. Elsewhere, iron ore edged lower to $121.80/tn as uncertainties in global economic growth returned to investors’ focus.

In the FX space, short and medium term accounts were less bullish as Yen and Swiss advanced further in demand territories alongside Aussie and King Dollar. Loonie had a demand spike in the short term as BoC signaled tapering and plans for rate hike. Long term remains unchanged. On Thursday, markets look for US GDP, jobless claims and earnings reports, especially from Amazon (AMZN), Apple (AAPL), Caterpillar (CAT), Mastercard (MA), Merck (MRK) and Newmont (NEM) to gauge further covid impact on the economy.

OUR PICK – No New FX/Commodities Pick

No new picks as we had three losses in a row. Though AUD/CAD has reached all targets, two trades of EUR/CHF and a short in XAU/USD didn’t quite work out as planned. Following our rules of three strikes and you are out, we have no new pick until after NFP Friday next month. 

For high probability FX/commodities picks, please use our Trading Central services.

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.