STATE OF THE MARKETS

Stocks mixed amid falling yields. US stocks closed mixed on Tuesday as safe-haven flows to bonds continue, sending yields lower ahead of the inflation data on Wednesday. S&P (+0.25%) and Nasdaq (+0.98%) edged higher while Russell (-0.02%) and Dow (-0.26%) tumbled further as investors flocked to bonds for safety. As at writing, the 10Y (2.94%) yield is back below 3%, while inversion with the 7Y (2.95%) remains.

In the commodities market, crude slid further on news of delay in European ban of Russian oil and the black gold settled around $98.30/bl as New York closed. Similarly, gold dived deeper into support as demand for yields bearing assets returned and the non-interest bearing metal settled around $1,838/oz. Elsewhere, iron ore tumbled further to $131.90/tn amid demand concerns from China renewed lockdowns.

In the FX space, sentiments are more bearish as Yen advanced further in the long term demand territories while keeping the reign in the short and medium term accounts. Aussie and Kiwi were sent to the back burner across all horizons.

On Wednesday, markets seemed less optimistic about the peace talks but look forward to seeing earning reports from Disney (DIS), Alibaba (BABA), Beyond Meat (BYND), Dillard’s (DDS), Rivian Auto (RIVN), Perrigo (PRGO), and Amdocs (DOX) as well as the latest figures on US inflation. EIA petroleum status reports will  be in the spotlight for energy traders.