STATE OF THE MARKETS

Dollar jumped on haven flows. US stocks closed mixed on Wednesday as investors continue to weigh inflation and recession impact on the global economy when US GDP showed contraction in the first quarter. Dow (+0.27%) managed to eke minor gains while Russell (-1.12%) fell the most, followed by S&P (-0.07%) and Nasdaq (-0.03%).

Dollar jumped past the 105.10 mark as demands for US treasuries flooded in, sending yields lower across the board. Yield inversions, however, remain with the 10Y (3.10%) lower than the 3Y (3.13%), 5Y (3.15%) and 7Y (3.17%) as the 30Y stood at 3.22% at writing.

In the commodities market, crude fell lower to $108.25/bl after news of increasing inventories from EIA while Dollar strength continued to weigh on gold. The precious metal settled around $1,817.40/oz as New York closed. Elsewhere, iron ore suffered a similar fate as the commodity traded lower around $130.50/tn.

In the FX space, sentiments flipped to bearish as Swiss seized the helm of demand in the short and medium term accounts alongside Dollar and Loonie. Dollar strength continued to weigh on Euro, Sterling and Aussie while long term sentiments were little changed.

On Thursday, markets expect another volatile and choppy session while waiting for earnings report from Micron Tech (MU), Constellation Brands (STZ), Walgreens (WBA), Acuity Brands (AYI), and Simply Good Foods (SMPL) as well as the latest figures in US jobless claims, personal consumption expenditures and composite PMIs.