STATE OF THE MARKETS

Equities mixed amid Russian oil sanctions. Global equities traded mixed on Tuesday as the US imposed new sanctions on Russian oil imports. Dow (-0.56%), S&P (-0.72%) were down while Nikkei (-0.30%), Hang Seng (-0.67%) pared earlier gains as FTSE (+1.64%), DAX (+4.97%) and Stoxx (+2.98%) rebound on early Wednesday trading.

Investors and traders were seen to take profits off the table in safe-havens as the Dollar hit the 99.50 minor handle and gold hit $2,070/oz on Monday. At writing, Dollar eased to 98.50 mark while gold retreaded to $2,000 the figure. Investors continue to ditch bonds sending yields higher with the 10Y benchmark climbed back to 191 basis points.

In the commodities market, profit taking seemed to be in place as crude retreated from as high as $126/bl to $117/bl at writing. Similarly, gold pared earlier gains from as high as $2070/oz to $2,000/oz. Elsewhere, iron ore continues its upward trajectory to almost $161/tn as demand for the commodity is expected to increase if the war prolonged.

In the FX space, short term traders seemed to be bidding Dollar and Euro while dumping Aussie and Loonie. Kiwi seized the helm of demand from Aussie in the medium and long term accounts as King Dollar advanced further in the demand territories.

On Tuesday, the war will continue to be in the spotlights while markets look for earnings reports from CrowdStrike (CRWD), Franco-Nevada (FNV), Ke Holdings (BEKE), Campbell Soup (CPB), Thor Industries (THO), Asana (ASAN) and Marqeta (MQ) as well as the latest figures on mortgage applications and jobs opening. EIA petroleum status reports will be in the spotlight for energy traders.

OUR PICK – No New Pick

We stay on the sideline for now. Given high volatility and uncertainty and overstretched market at this point, we decided to stay on the sideline for now.

For high probability picks, please use our Trading Central services. You could also join us at MFM’s TradeCopy

Risk Disclaimer:

This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities/oz. 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.