STATE OF THE MARKETS

Stocks under selling pressure. US stocks were under selling pressure throughout Monday, despite closing in the green, after Fed’s comments of aggressive rate hikes to combat inflation. Dow (+0.26%), Nasdaq (+1.63%) and S&P (+0.57%), including Russell (+1.01%) climbed higher after being battered for the past five weeks. Fed’s comment sent yields higher with inversion and flat seen between 5Y (3.00%), 7Y (3.03%) and the 10Y (2.98%) and 30Y (3.03%). The Dollar index was stalled at the 103.50 minor handle.

In the commodities market, crude dipped to $99.50/bl on demand concerns, before bidders emerged and settled the black gold higher around $104.15/bl as New York closed. Higher yields continue to press gold lower to close around $1,862.65/oz while iron ore continues to fall lower to $144.00/tn as China lockdowns continue.

In the FX space, King Dollar retained the reign in medium and long term accounts while demand in the short term remained elevated. Overall sentiments turned more bearish as the safe-haven Yen are more in demand across the board.

On Tuesday, markets seemed more cautious as FOMC looms while look forward to seeing earning reports from Advanced Micro Devices (AMD), Starbucks (SBUX), Hilton (HLT), Prudential (PRU), Zebra Tech (ZBRA), Pfizer (PFE), Martin Marietta Materials (MLM) and Estee Lauder (EL) as well as the latest US factory orders, automobile sales and jobs opening.

OUR PICK – No New Pick

We decided to stay on the sideline. Given higher than usual volatility right now, we decided to stay on the sideline.

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.